Annual Report 2016 2017 PDF

2016-2017
PABX : 8001450-54
Fax : 880-2-8001446
Email : renata@renata-ltd.com
Website : www.renata-ltd.com
Corporate Headquarters: Plot # 1, Milk Vita Road, Section-7, Mirpur, Dhaka-1216, Bangladesh
TRANSMITTAL LETTER
The Shareholders
Bangladesh Securities and Exchange Commission
Registrar of Joint Stock Companies & Firms
Dhaka Stock Exchange Ltd.
Sub: Annual Report for the year ended June 30, 2017
Dear Sir/Madam (s)
We are pleased to enclose a copy of our Annual Report and Audited Accounts
including a Statement of Financial Position, a Statement of Comprehensive
Income, and notes and annexes as needed for the year that ended June 30,
2017. We hope you enjoy reviewing the Report and seeing how Renata has
grown as a company over the past year.
Yours sincerely,
Md. Jubayer Alam

Company Secretary
October 21, 2017
Annual General Meeting
2015-2016
RENATA LIMITED
Corporate Headquarters: Plot # 1, Milk Vita Road
Section-7, Mirpur, Dhaka-1216
October 21, 2017

NOTICE
NOTICE is hereby given that the 44th Annual General Meeting of Renata Limited will be held at Lakeshore
Hotel, La Vita Hall, Road-41, House-46, Gulshan-2, Dhaka-1212 on Saturday, December 09, 2017 at 11.00
a.m. to transact the following business :
AGENDA
Agenda-1: To receive, consider, and adopt the Audited Accounts of the Company for the year ended
June 30, 2017 together with Reports of the Auditors and the Directors.
Agenda-2: To declare dividend for the year which ended on June 30, 2017 (See note ii).
Agenda-3: To elect Directors, in accordance with the relevant provisions of the Articles of Association of
the Company.
Agenda-4: To re-appoint the Independent Director.
Agenda-5: To appoint Auditors for the year 2017-2018 and to fix their remuneration.
By Order of the Board
(Md. Jubayer Alam)

Company Secretary
NOTES:
i) The ‘Record Date’ (in lieu of Book Closure) is Thursday, November 09. 2017. The Shareowners whose name
will appear in the Share Register of the Company and in the Depository Register on that Date will be eligible
to attend the meeting and qualify for the Dividend to be declared at the AGM.
ii) The Directors have recommended @ 90% final cash dividend ( i.e. total 130% cash dividend for year
2016-2017 inclusive 40% interim cash dividend) and stock dividend (bonus share) @ 15% for the year ended
June 30, 2017.
iii) A member entitled to attend and vote at the Annual General Meeting may appoint a proxy to attend and vote
on his/her behalf. The Proxy Form, duly completed, must be deposited at the Registered Office of the Company
at Plot # 1, Milk Vita Road, Section-7, Mirpur, Dhaka-1216 not later than 48 hours before the time fixed for
the Meeting.
iv) Members are requested to notify change of address, if any, to the Company. For BO A/C holders, the same
to be rectified through their respective Depository Participants.
v) Admission into the Meeting Room will be allowed on production of the “Attendance Slip” attached with the
Proxy Form.
1 Company Profile
3 Our Values
4 Our Mission and Vision
7 Chairman’s Statement
11 Board of Directors
16 Corporate Governance
17 Directors’ Report
31 Financial Highlights
32 Financial Trend
33 Statement of Value Addition
34 Corporate Social Responsibility
36 Product Portfolio
Financial Statements of Renata Limited
50 Auditors’ Report
51 Statement of Financial Position
52 Statement of Profit or Loss and Other Comprehensive Income
53 Statement of Changes in Equity
54 Cash Flow Statement
55 Notes to the Financial Statements
Report and Financial Statements of Renata Agro Industries Limited
87 Statement of Profit or Loss and other Comprehensive Income

Report and Financial Statements of Purnava Limited
108 Statement of Comprehensive Income
Report and Financial Statements of Renata Oncology Limited
Consolidated Financial Statements of Renata Limited and its Subsidiaries
140 Statement of Profit or Loss and Other Comprehensive Income
168 Corporate Directory
169 Proxy Form

Year of Incorporation
1972 as Pfizer Laboratories (Bangladesh) Limited,
subsidiary of Pfizer Corporation, USA
Change of Name
1993 Renamed as Renata Limited after divestment of
shareholdings by Pfizer Corporation, USA
Field of Business
Manufacturing, Marketing & Distribution of Human Pharmaceuticals,
Animal Health Medicines, Nutritionals, and Vaccines
Contract Manufacturing
General products for UNICEF and SMC
MHRA Certificate
Medicines and Healthcare products Regulatory Agency, UK
has issued a Certificate of GMP Compliance of a Manufacturer
to Renata Limited for our Potent Products Facility at section 7, Mirpur, Dhaka
Marketing & Distribution Rights

• Evans Vanodine International (UK): Animal farm disinfectants
• Zinpro Corporation (USA)
• Biomin Holding GmbH (Austria): Animal nutritional products
• Bomac (New Zealand): Animal health products
• Novus (USA): Animal health products
• Indian Herbs Overseas
• Blue Seas Life Sciences
• Dongbu Farm Hannong Co. Ltd., Korea
• IZO Vaccines, Italy
Investment in Subsidiaries
• 99.99% Shareholding in Renata Agro Industries Limited
• 99.99% Shareholding in Purnava Limited
• 99.99% Shareholding in Renata Oncology Limited
•1
BRAC Bank Limited
S. F. Ahmed & Co.,
Vertex Chambers
2 •renata annual report

Customer Focus
Customer satisfaction is the main
reason behind all our activities.
Integrity
We conform to the highest
ethical standards.
Social Responsibility
We make active efforts to improve
the welfare of our community.
Building Leaders
Renata cannot grow without
leadership in all spheres of our
activities. Therefore creating
leaders is a key priority.
The Corporate Family

We recognise that people are the
cornerstone of Renata’s success.
We are one big family where each
of us expects to be treated fairly
and with dignity.
•3
Our
Mission
To provide maximum
value to our customers,
and communities where
we live and work.
Approach
to Quality
The endurance of a company’s
reputation depends upon the
quality of work it does rather
than the quantity. Hence, the
appreciation of quality must be
instinctive, and our commitment
to quality must be total.
Our Vision
To establish Renata permanently
among the best of innovative
branded generic companies.

HSBC
5th
Climate Awards
Renata Ltd
Climate champion in
Green Operations
•5
Chairman’s Statement
Welcome to the 44th Annual General Meeting of Renata Limited. I mentioned last year that to increase focus on brands, we have begun
piloting the concept of specialised field-forces. While, we are by no means
Our performance for 2016-17 was satisfactory. While sales grew by the first company to identify this need, it does appear that unless the
a modest 13%, net profit rose by a respectable 19%. scheme is properly thought-out, the impact of this programme can be
extremely limited. It is because of this reason we took two years in
As we have mentioned in the last few years, achieving double-digit evaluating whether to scale-up this programme.
growth year after year in the pharmaceutical business is becoming
quite a challenge due to the paucity of new pharmaceutical products The split-field strategy can and does work in certain types of markets, and
in the world. We have also stressed that in this environment of low also for a limited range of products. These markets and products have to
R&D productivity, it has become increasingly important to efficiently be identified judiciously, and consequently, scale-up should be at a gentle
utilise the full potential of existing product portfolio. To this end, we pace.
have implemented and piloted a number of ideas over the last three
years. I shall elaborate on the progress of our strategic actions later The selling-model in the Bangladesh pharmaceutical market is heavily
in this statement. dependent on medical-sales representatives. In fact, no other country in
the world has so many medical representatives per unit of sales, which
We have attempted to analyse the underlying factors for growth in makes this modus operandi highly inefficient. Moreover, because of the
the Bangladesh pharmaceutical market. While economic ungainly size of the field-force, the average representative is poorly
development is undoubtedly a key determinant of market growth, it trained and under-valued by companies.
is not straightforward to quantify the relationship of an exogenous
factor such as GDP growth rate, with market growth because of the In order to address the problem of
preponderance of a variety of factors influencing performance. poor training, we have introduced a
However, endogenous growth, which is the growth that smart-phone based app which
pharmaceutical companies foster through various promotional makes learning fun, easy, and
campaigns are much easier to identify and analyse. financially rewarding. We hope
that in the coming years our
Looking at the performance of each molecule, it is clear that the representatives shall be recognised
prospects of endogenous growth remain good in Bangladesh. Table as the best in Bangladesh.
No. 1 identifies lists examples of relatively old molecules which have
experienced growth spurts in the local market simply because of the I am happy to report that our
backing of strong and sustained promotional programmes. international business is growing
rapidly. We continue to win repeat
These 20 relatively old molecules contribute to over a third of total orders at institutional markets.
growth in the market. Evidently therefore, it is simply not enough to Moreover, after a steep learning-
focus on exogenous growth. So, rather than just asking, “By what curve, developing products for the
rate shall the market grow?” companies must seriously assess “By most regulated markets in the world
how much can we influence the market growth rate?” To this end, is becoming a quotidian activity. We
companies should focus on specific therapeutic areas where they expect our first product registrations
have considerable strength. in Europe by the end of 2017.
Table No. 1
2017
Growth Share of Growth Growth Share of Growth
ESOMEPRAZOLE 27% 8.3% DOMPERIDONE 24% 1.2%
CALCIUM 27% 3.7% AMOXICILLIN 20% 1.0%
MONTELUKAST 36% 3.2% BISOPROLOL 33% 1.0%
CLONAZEPAM 39% 2.4% MELITRACEN + FLUPENTIXOL 16% 0.8%
METFORMIN COMBINATION 36% 2.1% CLOPIDOGREL PLAIN 35% 0.8%
AMLODIPINE COMBINATION 27% 2.0% CETIRIZINE 20% 0.5%
PREGABALIN 36% 1.5% CLOPIDOGREL COMBINATION 30% 0.5%
METFORMIN PLAIN 37% 1.4% TIEMONIUM 18% 0.5%
NAPROXEN 22% 1.3% FLUCONAZOLE 18% 0.5%
ROSUVASTATIN 49% 1.3% AMLODIPINE PLAIN 13% 0.3%
Growth of 20 Old Molecules 28%

Share of Growth refers to the contribution of each molecule to total industry growth.
Contribution of Growth of So, for example, the growth in Esomeprazole accounted for 8.3% of
these 20 Molecules to the total growth in the pharmaceutical industry.
Total Industry Growth 34%
•7
We have also made good progress regarding entry into the US Moreover, as the pharmaceutical market evolves, the increasing share of
market. The product-licence market is quite active in the USA, so institutional buying from both public and private hospitals puts severe
apart from developing products on our own, we expect to acquire downward pressure on prices. Due to these two reasons, we have
rights to products for fast entry into the largest market in the world. focused on long-term growth. As our shareholders are aware, this path
has not been easy. The latest setback came when MHRA inspectors, out
In this regard, we are heartened to note the Bangladesh Bank is of security concerns refused to visit Bangladesh. This stance of the UK
beginning to lift foreign exchange restrictions on the acquisition of regulator essentially put our European strategy on ice. I am therefore
product licences. Once the process is liberalized, it would provide delighted to inform you that MHRA lifted its travel embargo and our Potent
a huge opportunity for Renata to acquire product licences in Product Facility in Mirpur passed an inspection with zero major
significant quantities. observations.
Presently, our balance sheet strength is excellent to embark on Hopefully, our sales to the UK, Ireland, and Germany shall start soon. If
such acquisitions. There is virtually no long-term debt and we are able to grow our business in regulated markets, thereby reducing
overdraft lines are under-utilized. Moreover, projected cash-flow, our reliance on the local market, we would then be able to make changes
even under circumspect assumptions, remains strong. to the inefficient selling model that is complicated and, in the long-run
unsustainable.
A major development has been the implementation of Enterprise
Resource Planning (ERP) at Renata. All our operations, viz., Contract-Manufacturing: We are now by far the largest manufacturer/
manufacturing, selling, distribution, administration, and planning supplier of oral contraceptives in the country. Bangladesh has one of the
are now integrated online. We hope to make significant most successful family planning programmes in the world, and we take
improvements in inventory planning, manufacturing efficiency, pride in saying that two-thirds of the oral contraceptives used in
and financial monitoring. In total, 600 computers are connected to Government programmes are manufactured by Renata Limited. In
the ERP server. addition, we are also the largest manufacturer of ORS in the country.
Outside Bangladesh, Renata is among the largest suppliers of
I now turn to our constituent businesses. micronutrient powders in the world. We hope that this segment of the
business shall go from strength to strength.
Animal Health: Last year marked the 20th consecutive year that
we have been no. 1 in the Animal Health market. We have led the Outlook for 2017-18: Our outlook is positive. There are two risks worth
way in customer-focused, ethical marketing. Unfortunately, bearing in mind, viz., major socio-political uncertainty, and a large
companies have begun replicating the short-sighted and depreciation in the value of the Taka which can raise the cost of our
inefficient selling practices that have beset the pharmaceutical imports.
market. Given our leadership position in Animal Health, it is
incumbent upon us to resist this degeneration. A positive
development in the industry is that the demand for learning about
best husbandry practices at the farm-level is rising. Companies
have begun to engage veterinary experts to meet this demand,
which is also helping in the building of long-term relationships. We Dr. Sarwar Ali
hope that this development shall curtail the proliferation of very
large sales-forces and unethical marketing practices.
Chairman
October 21, 2017
Pharmaceutical: We continue to hold on to the 4th position in
terms of sales in the Industry. While this market continues to
exhibit double-digit growth, it must be remembered that it is
relative to a low base. For example, the Bangladesh
pharmaceutical market is valued at slightly more than US $2
billion, which only puts us at par with the tenth largest company
operating in the generic pharmaceutical market in the world (See
Table No. 2).
Table No. 2
2016 Sales in $bn
Teva 9.9
Mylan 9.4
Novartis 9.0
Pfizer 4.6
Allergan 4.5
Sun 3.6
Fresenius 2.8
Endo 2.6
Lupin 2.5
Sanofi 2.1

•9
( )

Dr. Sarwar Ali, Chairman
Current Responsibilities
Chairman, Board of Directors, Renata Limited
Trustee, Liberation War Museum
Executive President, Chhayanaut
Chairman, Board of Management, BIRDEM Hospital
Vice President, Bangladesh Diabetic Association
Past Responsibilities
Director, Renata Limited
Managing Director, Renata Limited
Medical Director, Pfizer (Bangladesh) Limited
President Bangladesh Employers’ Federation
International Councilor of IPPNW
Secretary General, Bangladesh Medical Association
Member, Dhaka University Senate
Education
MBBS, Dhaka Medical College
Kaiser Kabir, CEO & Managing Director

CEO & Managing Director, Renata Limited
Chairman, Renata Agro Industries Limited
Chairman, Purnava Limited
Chairman, Renata Oncology Limited
Board Member, Sajida Foundation
Board Member, BRAC
Director, BRAC Bank Limited
Vice President, Bangladesh Association of Pharmaceutical Industries
Board of Directors, GAIN
Member, Finance & Audit Committee
Member, Nominations Committee
Managing Director, BRAC-Renata Agro Industries Limited
Executive Director, Sajida Foundation
National Macroeconomist, Financial Sector Reform Project
Consultant, The World Bank, RMB
Research Officer, Institute of Economics & Statistics, University of Oxford
Education
MPhil in Economics, University of Oxford, UK
Postgraduate Diploma in Economics with Distinction,
University of East Anglia, UK
Bachelor of Arts in Economics and International Relations,
Claremont McKenna College, USA
•11
A. Hasanat Khan, Director
Senior Consultant, Eshna Consulting Team Ltd
MD, BOC Bangladesh Ltd
President, Foreign Investors Chamber of Commerce & Industries
Committee Member, MCCI
Committee Member, Employers Federation
Chief, Productivity Services Wing, ILO
President, Rotary Club of Dhaka
Engineering Consultant, IFC-SEDF
CEO, Consortium for Industrial & Engineering Services
Director, System Engineering Ltd
Education
M.Sc. Tech (UK)
C. Eng. M. I. Mech. E. (UK)
Life Member ASME (USA)
Zahida Fizza Kabir, Director

Executive Director, Sajida Foundation
Director of Programs, Sajida Foundation
Senior Program Officer, Sajida Foundation
Education
Masters Degree in International and Intercultural Management,
School for International Training, Vermont, USA
Bachelor’s Degree in Social Work,
University of the Philippines
Post graduate diploma on “Organizational leadership”,
Said Business School, University of Oxford

Sajeda Farisa Kabir, Director
Program Head, Human Rights and Legal Services Program, BRAC
Founding Partner, Vertex Chambers, Dhaka, Bangladesh
Counsel Barrister, Temple Court Chambers Dhaka Annexe, Dhaka,
Bangladesh
Senior Regional Manager, Human Rights and Legal Services Program,
BRAC
Education
Post Graduate Diploma in Professional Legal Skills, City University,
London, UK
LLB (Honours), Cardiff Law School, University of Wales, UK
Professional Qualifications
Barrister (of Lincoln’s Inn)
Advocate, Supreme Court of Bangladesh
Lawyer (New South Wales), Australia
Manzoor Hasan, OBE, Independent Director

Executive Director, Centre for Peace and Justice, BRAC University
Chair, Action Aid International Bangladesh
Director, Institute of Governance Studies, BRAC University
Regional Director, Asia-Pacific, Transparency International, Germany
Executive Director, Transparency International Bangladesh
Barrister, Dr. Kamal Hossain and Associates, Bangladesh
Barrister, 6 King's Bench Walk, Temple, London, England
Education
The Honourable Society of Lincoln’s Inn, England
London School of Economics, England
Honours
Her Majesty Queen Elizabeth II awarded Manzoor Hasan
with the Officer of the Order of the British Empire (OBE) on 14th June,
2003 for the service given to Transparency International Bangladesh
•13
Kazi Sanaul Hoq, Director
Director, Renata Limited (From September 06, 2017)
Managing Director, Investment Corporation of Bangladesh
Chairman, ICB Capital Management Ltd.
Director of British American Tobacco Bangladesh Co. Ltd. (BATBC),
Linde Bangladesh Limited, GlaxoSmithKline Bangladesh Ltd. (GSK),
Bangladesh Krishi Gobeshona Endowment Trust (BKGET),
Credit Rating Agency of Bangladesh Ltd. (CRAB),
Credit Rating Information and Services Ltd. (CRISL),
Standard Bank Limited, National Tea Company Limited,
Apex Tanary Limited, Central Depository Bangladesh Ltd. (CDBL) and
some other.
Managing Director, Rajshahi Krishi Unnayan Bank (RAKUB)
Managing Director (Current Charge), Agrani Bank Ltd.
Deputy Managing Director, Agrani Bank Ltd.
General Manager, Bangladesh Development Bank Limited (BDBL)
General Manager, Rajshahi Krishi Unnayan Bank (RAKUB)
CEO, ICB Securities Trading Company Ltd.
Education
B.Com (Honors) Accounting, University of Dhaka
M.Com (Accounting), University of Dhaka
Tanya Tazeen Karim, Independent Director

Architect Partner, Tanya Karim NR Khan & Associates
Board Member: Bangladesh Womens’ Chamber of Commerce &
Industry(BWCCI)
Director: Vantage Engineering & Construction Ltd.
MD: Urban Bangla Ltd.
Visiting Lecturer: Adjunct Faculty,University of Asia Pacific.
Past Responsibilities & Achievements
EC Member: Women Architects, Engineers,Planners
Association(WAEPA)
Board Member & Member of Development Committee of Presidency
University Foundation.
Founder Member: UW2SDA (Urban Water, Wastelands Society &
Design Alliance), presently ISUS (Institute for Sustainable Urban
Studies)also attached to the ‘Swaraswati Program’ for exchange
program of Environmental Expertise among selected universities of
USA, India and Bangladesh.
Education
B. Arch from Bangladesh University of
Engineering & Technology(BUET) Management
Course for Women Entrepreneurs from IBA

Md. Iftikhar-Uz-Zaman, Director
Director, Renata Limited (Upto September 06, 2017)
Managing Director, Investment Corporation of Bangladesh
Chairman, ICB Capital Management Ltd.
Director of British American Tobacco Bangladesh Co. Ltd. (BATBC),
Linde Bangladesh Limited, GlaxoSmithKline Bangladesh Ltd. (GSK),
Bangladesh Krishi Gobeshona Endowment Trust (BKGET),
Credit Rating Agency of Bangladesh Ltd. (CRAB),
Credit Rating Information and Services Ltd. (CRISL),
Standard Bank Limited, National Tea Company Limited,
Apex Tanary Limited, Central Depository Bangladesh Ltd. (CDBL),
CAPM Venture Capital & Finance Ltd. (CVCFL) and some other.
Deputy Managing Director, Investment Corporation of Bangladesh
Deputy Managing Director, Janata Bank Ltd.
General Manager, Investment Corporation of Bangladesh
Education
B.A. (Honors), Statistics (University of Rajshahi)
M.A. Statistics (University of Rajshahi)
Md. Jubayer Alam, Company Secretary

Company Secretary, Renata Limited
Human Resources Manager, Renata Limited
Training Manager, Renata Limited
Regional Sales Manager, Novartis (BD) Limited
Education
LLB from Atish Dipankar University of Science and Technology
MBA (Major in HRM) from Stamford University
MBA (Major in Marketing) from Stamford University
Masters in Psychology from University of Dhaka
THE AUDIT COMMITTEE

Mr. Manzoor Hasan - Independent Director • Chairman, Audit Committee
Mr. Kaiser Kabir - CEO & Managing Director • Member
Mrs.Tanya Tazeen Karim - Independent Director • Member
•15
General Manager, Pharmaceutical Sales
General Manager, Manufacturing
Head of Marketing, Pharmaceutical
Head of Animal Health
Heads of Quality Assurance
Head of International Regulatory Affairs
Head of Human Resources Division
Head of Projects
Head of International Business
Head of Finance
Head of Information Technology

•17
TO THE MEMBERS
The Directors of Renata Limited are pleased to present their Annual Report along with the Audited Financial Statements
of the Company for the year which ended on June 30, 2017.
BUSINESS ACTIVITIES
Turnover during 2016-17 was Taka 16,043.4 million registering a growth of 13.0% over last year’s turnover of Taka
14,200.8 million. Profit after tax was Taka 2,625.5 million – a growth of 18.5%. Earnings per Share (EPS) stood at Taka
42.89 against Taka 36.42 of 2015-16.
NEW PHARMACEUTICAL PRODUCTS

Renata introduced 14 new formulations during the year 2016-17
Sl. Brand Name Generic Division Developed by

1 AB Kit Mifepristone+Misoprostol Pharmaceutical Renata
2 Calcin O DS Calcium Orotate Pharmaceutical Renata
3 Azisan-80 Azilasartan Pharmaceutical Renata
4 Azisan-40 Azilasartan Pharmaceutical Renata
5 Orcef DS Cefixime Pharmaceutical Renata
6 MELOCAM 10ML INJ Meloxicam Animal Health Renata
7 CAL D MAG 500ML INJ Calcium+Magnesium+Phosphorus Animal Health Renata
Dextrose+Boric Acid
8 RENASOL AD3E 100ML Vit A+ Vit D +Vit E Animal Health Renata
9 AVAILA ZMC 25KG POWDER Zinc+Manganese+Copper Animal Health Zinpro, USA
(As amino acid complex)
10 AMMORID 1 LITER Nitrifying and Denitrifying Probiotic Animal Health Intron Life Sciences, Thailand
11 ULTIPRO 5 LITER Beneficiary Bacteria with Yeast Animal Health Intron Life Sciences, Thailand
12 REALBIND 1 LITER Protin+Vitamin+Minerals Animal Health Intron Life Sciences, Thailand
13 RENALYTE F 100GM Electrolyte Animal Health Renata
14 RENALYTE F 1KG Electrolyte Animal Health Renata
CAPITAL EXPENDITURE
The following capital expenditure made by the Company during the year amounted to Taka 1,204.9 million.
Taka in millions
2016-17
Freehold Land 47.2

Building 499.3
Plant and Machinery 426.9
Automobile 93.5
Office Equipment, Furniture & Fixtures and others 138.0
Total 1,204.9
The investments were funded from internally generated cash and bank loans.

DIVIDEND
While there is reasonable profit available for
distribution, the investment pipeline is also
rich. Hence the Directors deem it necessary to
retain adequate funds to finance the capital Financial Results
expenditures for capacity building to sustain The Directors take pleasure in reporting the following financial resultsof
the growth of the company. the Company for the year 2016-17
The Board of Directors is pleased to

recommend a cash dividend of Taka 13.00 per 2016-17 2015-16
ordinary share of Taka 10 each. This dividend Taka Taka
will entail a payment of Taka 791,655,033. The Profit before tax 3,691,714,958 3,202,851,740
Board of Directors also recommend for
Less: Provision for tax 1,079,572,544 984,937,442
declaration of Stock Dividend (Bonus Shares)
Net Profit after tax 2,612,142,414 2,217,914,298
in the ratio of one Bonus Share for every 6.67
Add/(Less) Other comprehensive income 13,368,239 (3,195,776)
shares held for which an amount of Taka
Total Comprehensive income 2,625,510,653 2,214,718,522
91,344,811 will have to be transferred to Share
Capital Account. Add: Unappropriated profit brought forward 9,327,724,886 7,345,568,549
Add: Depreciation of revaluation surplus 635,885 635,885
Add: Tax holiday reserve reversed (Net) - 296,337,069
CONTRIBUTION TO 11,953,871,424 9,857,260,025

NATIONAL
APPROPRIATION RECOMMENDED
EXCHEQUER
During the year under review Renata paid Dividend proposed:
Taka 3,816 million to the National Exchequer in
the form of Corporate Income Tax, Import a) Cash dividend @ 13.00 Taka per share 791,655,033 450,104,869
Duties and Value Added Tax (VAT) Out of the amount Interim dividend paid (243,586,164) -
b) Stock dividend (Bonus Share) in the ratio

DIRECTORS of one bonus share for every 6.67 shares
The vacancy caused due to change of Mr. Md. held (6.67:1B) 91,344,811 79,430,270
Iftikhar-Uz-Zaman was filled by Mr. Kazi 639,413,680 529,535,139
Sanaul Hoq, Managing Director by Investment Balance of unappropriated profit carried
Corporation of Bangladesh. Forward 11,314,457,744 9,327,724,886
11,953,871,424 9,857,260,025
According to the provisions of Article 105 of the
Articles of Association of the Company, Mr.
Kazi Sanaul Hoq, retires at the 44th Annual
General Meeting and being eligible offers
himself for re-election.
The Directors retiring by rotation under Articles 109, 115 and 116 of the Articles of Association of the Company Mr. A. Hasanat
Khan and Mr. Manzoor Hasan who, being eligible, offer themselves for re-election.
AUDITORS
The Company’s Auditor Messrs S. F. Ahmed & Co., Chartered Accountants retire at the 44thAnnual General Meeting and being
eligible may offer themselves for reappointment as auditor for the year 2017-18 with re-fixation of their remuneration.
CONSOLIDATION OF ACCOUNTS
The Company is consistently following the Code of International Accounting Standard as adopted by the Institute of Chartered
Accountants of Bangladesh. According to Bangladesh Accounting Standard-27, (BAS-27) the Company has presented all the
relevant consolidated financial statements with those of its subsidiaries.
ADDITIONAL STATEMENT
The Directors are pleased to make the following additional statements in respect of the Report prepared under section 184 of
•19
the Companies Act 1994. k) The pattern of Shareholding
(i) Parent/ Subsidiary / Associated companies:
We report,
The Shareholding information as on 30th June 2017
a) The financial statements prepared by the and other related information are set out in note- 7.
management for the year 2016-17 give a true and
fair view of the state of company about the results of (ii) Directors Name No. of Shares
its operations, cash flows and changes in equity. Dr. Sarwar Ali 3,367
Mr. Syed S. Kaiser Kabir 72,513
b) Proper books of accounts have been maintained Mrs. Zahida Fizza Kabir 17,681
by the company as required by applicable Laws, Mrs. Sajeda Farisa Kabir 8,857
Rules and Standard. Mr. A. Hasanat Khan -
Mr. Md.Iftikhar-Uz-Zaman -
c) Appropriate accounting policies have been
Mr. Manzoor Hasan -
consistently applied in preparation of the financial
Mrs. Tanya Tanzeen Karim -
statements and that accounting estimates are
based on reasonable and prudent judgments. (iii) Company Secretary 836
d) In preparation of the financial statement, the Mr. Jubayer Alam
International Accounting Standard, as applicable in (iv) Chief Financial Officer (CFO)
Bangladesh has been followed and there has been Mr. Khokan Chandra Das 715
no departure from the policies.
(v) Head of Internal Audit
e) The system of internal control and internal check
Mr. ATM Muniruzzaman 143
are in effect and monitored properly.
f) The company has sound and strong operational (vi) Executives:

strengths and ability to continue as a going Mr. Khalil Musaddeq 2,100
concern. As such, there is no doubt of its continuity. Dr. Sayma Ali 7,740
Mr. Monowarul Islam -
g) There is no significant deviation from last year in Mr. Sirajul Hoque 2,450
operating results. Mr. S.M. Anisur Rahman -
h) The key operating and financial data for preceding (vii) Shareholders holding 10% or more voting interest:
five years have been shown in the Financial Sajida Foundation 31,056,973
Highlights. Business Research International Corp. 13,265,768
i) The Directors, have recommended cash dividend
of Taka 13.00 per share of Taka 10 each and Stock STATUS OF COMPLIANCE
dividend (bonus share) in the ratio of one share for Status of compliance as stated in BSEC order dated 7th
every 6.67 shares are held. August 2012 is shown in Annexure-III.
j) During the year four board meeting were held and
the attendance by each Director are given below: PERSONNEL
The Directors record their appreciation for the
1. Dr. Sarwar Ali
contribution made by the employees for their efforts.
Chairman of the Board 4 times
2. Mr. Syed S. Kaiser Kabir
Managing Director 4 times ACKNOWLEDGEMENT
The Board wishes to thank the Shareholders, Officials of
3. Mrs. Zahida Fizza Kabir the Drug Administration and other Government officials,
Director 4 times Doctors, Chemists, Medical Institutions, Bankers, the
4. Mrs. Sajeda Farisa Kabir Securities and Exchange Commission, the Dhaka Stock
Director 2 times Exchange Limited and all our well-wishers for their
continued support.
5. Mr. A. Hasanat Khan
Director 4 times
On behalf of the Board of Directors
6. Mr. Md. Iftikhar-Uz-Zaman
Director 3 times
7. Mr. Manzoor Hasan
Independent Director 3 times Dr. Sarwar Ali
Chairman
8. Mrs. Tanya Tanzeen Karim
October 21, 2017
Independent Director 4 times

The CEO and CFO’s certification to the Board
We have reviewed the financial statements of Renata Limited for the year ended
June 30, 2017 and to the best of our knowledge and belief:
a) these statements do not contain any materially untrue statement or

omit any material fact or contain statements that might be misleading;
b) these statements together present a true and fair view of the company’s
affairs and are in compliance with existing accounting standards and
applicable laws.
There are, to the best of our knowdedge and bilief, no transactions entered into
by the company during the year which are fraudulent, illegal or violation of the
company’s code of conduct
Syed S. Kaiser Kabir Khokan Chandra Das

CEO & Managing Director Chief Financial Officer
October 21, 2017
•21
Status of compliance with the conditions imposed
by the BSEC’s Notification on SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August 2012
issued under section 2CC of the Securities and Exchange Ordinance 1969 on Corporate Governance
(Report under Condition No. 7.00)
Compliance Status
Condition Not Remarks
Title Complied Complied (if any)
No.
1.1 Board Size: The number of the Board members of the company shall √
not be less than 5 (five) and more than 20 (twenty).
1.2 (i) Independent Directors: At least one fifth (1/5) of the total number of √
Directors in the company’s Board shall be Independent Directors.
1.2 (ii) a) Independent Director does not hold any share or holds less than 1% √
shares of the total paid-up capital.
1.2 (ii) b) Independent Director or his family members are not connected with √
the company's any sponsor or Director or Shareholder who holds 1%
or more shares.
1.2 (ii) c) Does not have any other relationship, whether pecuniary or other- √
wise, with the company or its subsidiary/associated companies.
1.2 (ii) d) Independent Director is not a member, Director or officer of any √

Stock Exchange.
1.2 (ii) e) Independent Director is not a shareholder, Director or officer of any √

member of Stock Exchange or an intermediary of the capital market.
1.2 (ii) f) Independent Director is not a partner or an executive or was not a √

partner or an executive during the preceding 3 (three) years of any
statutory audit firm.
1.2 (ii) g) Independent Director shall not be an Independent Director in more √

than 3 (three) listed companies.
1.2 (ii) h) Independent Director has not been convicted by a court of compe- √
tent jurisdiction as a defaulter in payment of any loan to a bank or a
Non-Bank Financial Institution (NBFI).
1.2 (ii) i) Independent Director has not been convicted for a criminal offence √
involving moral turpitude.
1.2 (iii) The Independent Director(s) shall be appointed by the Board of √

Directors and approved by the shareholders in the AGM.
1.2 (iv) The Post of Independent Director(s) cannot remain vacant for more No such
event
than 90 (ninety) days. occurred
1.2 (v) The Board shall lay down a code of conduct of all Board members √
and annual compliance of the code to be recorded.
•23
Compliance Status
No.
1.2 (vi) The tenure of office of an Independent Director shall be for a period √
of 3 (three) years, which may be extended for 1 (one) term only.
1.3 (i) Independent Director shall be a knowledgeable individual with √

integrity who is able to ensure compliance with financial, regulatory
and corporate laws and can make meaningful contribution to
business.
1.3 (ii) Independent Director should be a Business Leader/ Corporate √

Leader/ Bureaucrat/ University Teacher with Economics or Business
Studies or Law background/ Professionals like Chartered Accoun-
tants, Cost & Management Accountants, and Chartered Secretaries.
The Independent Director must have at least 12 (twelve) years of
corporate management/ professional experiences.
1.3 (iii) In special cases the above qualifications may be relaxed subject to No such
prior approval of the Commission. case
1.4 Chairman and CEO shall be filled by different individuals. Chairman √

shall be elected from among the Directors. The Board of Directors
shall clearly define respective roles and responsibilities of the
Chairman and the CEO.
1.5 The Directors’ Report to Shareholders on:
1.5 (i) Industry outlook and possible future developments in the industry. √
1.5 (ii) Segment-wise or product-wise performance. √
1.5 (iii) Risks and concerns. √
1.5 (iv) A discussion on Cost of Goods sold, Gross Profit Margin and Net √
Profit Margin.
No such Extra-
1.5 (v) Discussion on continuity of any Extra-Ordinary gain or loss. Ordinary gain
or loss incurred
1.5 (vi) Basis for related party transactions- a statement of all related party √
transactions should be disclosed in the annual report.
1.5 (vii) Utilization of proceeds from public issues, rights issues and/or N/A
through any others instruments.
1.5 (viii) An explanation if the financial results deteriorate after the company
goes for Initial Public Offering (IPO), Repeat Public Offering (RPO), N/A
Rights Offer, Direct Listing, etc.
1.5 (ix) If significant variance occurs between Quarterly Financial perfor- No such
mance and Annual Financial Statements the management shall event
explain about the variance on their Annual Report. occurred
1.5 (x) Remuneration to Directors including Independent Directors . √

The financial statements prepared by the management of the issuer
1.5 (xi) company present fairly its state of affairs, the result of its operations, √
cash flows and changes in equity.

Compliance Status
Title Complied Complied
No. (if any)
1.5 (xii) Proper books of account of the issuer company have been √
maintained.
1.5 (xiii) Appropriate accounting policies have been consistently applied in √

preparation of the financial statements and that the accounting
estimates are based on reasonable and prudent judgment.
1.5 (xiv) International Accounting Standards (IAS)/ Bangladesh Accounting √

Standards (BAS)/ International Financial Reporting Standards
(IFRS)/ Bangladesh Financial Reporting Standards (BFRS), as
applicable in Bangladesh, have been followed in preparation of the
financial statements and any departure there-from has been
adequately disclosed.
1.5 (xv) The system of internal control is sound in design and has been √
effectively implemented and monitored.
1.5 (xvi) There are no significant doubts upon the issuer company's ability to √
continue as a going concern. If the issuer company is not considered
to be a going concern, the fact along with reasons thereof should be
disclosed.
1.5 (xvii) Significant deviations from the last year’s operating results of the No
issuer company shall be highlighted and the reasons thereof should significant
be explained. deviation
1.5 (xviii) Key operating and financial data of at least preceding 5 (five) years √
shall be summarized.
1.5 (xix) No Declaration of Dividend. Dividend

Declared
1.5 (xx) The number of Board meetings held during the year and attendance √
by each Director shall be disclosed.
1.5(xxi) The pattern of shareholding shall be reported to disclose the

aggregate number of shares (along with name wise details where
stated below) held by:-
1.5 (xxi) a) Parent/Subsidiary/Associated Companies and other related parties √

(name wise details);
1.5 (xxi) b) Directors, Chief Executive Officer, Company Secretary, Chief √

Financial Officer, Head of Internal Audit and their spouses and minor
children (name wise details).
1.5 (xxi) c) Executives. √
1.5 (xxi) d) Shareholders holding ten percent (10%) or more voting interest in √
the company (name wise details).
1.5 (xxii) In case of the appointment/re-appointment of a Director the company √

shall disclose the following information to the shareholders:-a) a brief
resume of the Director;b) nature of his/her expertise in specific
functional areas;c) names of companies in which the person also
holds the Directorship and the membership of committees of the Board.
•25
Compliance Status
Title Complied Complied
No. (if any)
2.1 The company shall appoint a Chief Financial Officer (CFO), a Head √
of Internal Audit (internal Control and Compliance) and a Company
Secretary (CS). The Board of Directors should clearly define
respective roles, responsibilities and duties of the CFO, the Head of
Internal Audit and the CS.
2.2 Attendance of CFO and the Company Secretary in the Board meeting. √
3 (i) The company shall have an Audit Committee as a sub-committee of √

the Board of Directors.
3 (ii) The Audit Committee shall assist the Board of Directors in ensuring √
that the financial statements reflect true and fair view of the state of
affairs of the company and in ensuring a good monitoring system
within the business.
3 (iii) The Audit Committee shall be responsible to the Board of Directors. √

The duties of the Audit Committee shall be clearly set forth in writing.
3.1 (i) The Audit Committee shall be composed of at least 3 (three) members. √
3.1 (ii) The Board of Directors shall appoint members of the Audit √
Committee who shall be Directors of the company and shall include
at least 1 (one)Independent Director.
3.1 (iii) All members of the Audit Committee should be “financially literate” √
and at least 1(one) member shall have accounting or related
financial management experience: The term Financially literate
means the ability to read and understand the financial statements i.e.
Balance Sheet, Income Statement and Cash Flow Statement and a
person will be considered to have accounting or related financial
management expertise if (s)he possesses professional qualification
or Accounting/finance graduate with at least 12 (twelve) years of
corporate management/ professional experiences.
No casual
3.1 (iv) Casual vacancy in Audit Committee shall be Filled by the Board. vacancy
occurred
3.1 (v) The company secretary shall act as the secretary of the Committee. √
3.1 (vi) The quorum of the Audit Committee (AC) meeting shall not constitute √
without at least 1 (one) Independent Director.
3.2 (i) The Board of Directors shall select 1 (one) member of the Audit √
Committee to be Chairman of the Audit Committee, who shall be an
Independent Director.
3.2 (ii) Chairman of the audit committee shall remain present in the Annual √
General Meeting.
3.3 (i) Role of the Audit Committee: Oversee the financial reporting process. √
3.3 (ii) Monitor choice of accounting policies and principles. √
3.3 (iii Monitor Internal Control Risk management process. √

Compliance Status
No.
3.3 (iv) Oversee hiring and performance of external auditors. √
3.3 (v) Review along with the management, the annual financial statements √
before submission to the Board for approval.
3.3 (vi) Review along with the management, the quarterly and half yearly √
financial statements before submission to the Board for approval.
3.3 (vii) Review the adequacy of internal audit function. √
3.3 (viii) Review statement of significant related party transactions submitted √

by the management.
3.3 (ix) Review Management Letters/ Letter of Internal Control weakness √

issued by statutory auditors.
3.3 (x) When money is raised through Initial Public Offering (IPO)/Repeat
Public Offering (RPO)/Rights Issue the company shall disclose to the
Audit Committee about the uses/applications of funds by major
category (capital expenditure, sales and marketing expenses, N/A
working capital, etc), on a quarterly basis, as a part of their quarterly
declaration of financial results. Further, on an annual basis, the
company shall prepare a statement of funds utilized for the purposes
other than those stated in the offer document/ prospectus.
3.4.1 (i) The Audit Committee shall report on its activities to the Board of √
Directors.
No such
3.4.1 (ii) a) Report on conflicts of interests to the Board of Directors. event
occurred
3.4.1 (ii) b) Will report any suspected or presumed fraud or irregularity or materi- No such
al defect in the internal control system to the Board. event
occurred
3.4.1 (ii) c) Will report any suspected infringement of laws, including securities No such
event
related laws, rules and regulations to the Board. occurred
3.4.1 (ii) d) Will report any other matter which shall be disclosed to the Board of No such
event
Directors immediately. occurred
3.4.2 Reporting to the Authorities: If the Audit Committee has reported to

the Board of Directors about anything which has material impact on
the financial condition and results of operation and has discussed
with the Board of Directors and the management that any
rectification is necessary and if the Audit Committee finds that such No such
rectification has been unreasonably ignored, the Audit Committee event
occurred
shall report such finding to the Commission, upon reporting of such
matters to the Board of Directors for three times or completion of a
period of 6 (six) months from the date of first reporting to the Board
of Directors, whichever is earlier.
3.5 Reporting to the Shareholders and General Investors: Report on

activities carried out by the Audit Committee, including any report
made to the Board of Directors under condition 3.4.1 (ii) above √
during the year, shall be signed by the Chairman of the Audit
Committee and disclosed in the annual report of the issuer company.
•27
Compliance Status
No.
4 (i) Non-engagement of external/statutory auditors in appraisal or √

valuation services or fairness opinions.
4 (ii) Non-engagement of external/statutory auditors in financial informa- √

tion systems design and implementation.
4 (iii) Non-engagement of external/statutory auditors in Book-keeping or other √

services related to the accounting records or financial statements.
4 (iv) Non-engagement of external/statutory auditors in Broker-dealer services. √
4 (v) Non-engagement of external/statutory auditors in Actuarial services. √
4 (vi) Non-engagement of external/statutory auditors in Internal audit services. √
4 (vii) Non-engagement of external/statutory auditors in any other service √

that the Audit Committee determines.
4 (viii) No partner or employees of the external audit firms shall possess √

any share of the company they audit at least during the tenure of
their audit assignment of that company.
4 (ix) Non-engagement of Auditor in audit/certification services on √

compliance of corporate governance as required under clause (i) of
condition no. 7.
5 (i) Provisions relating to the composition of the Board of Directors of the √

holding company shall be made applicable to the composition of the
Board of Directors of the subsidiary company.
5 (ii) At least 1 (one) Independent Director on the Board of Directors of the √

holding company shall be a Director on the Board of Directors of the
subsidiary company.
5 (iii) The minutes of the Board meeting of the subsidiary company shall be √
placed for review at the following Board meeting of the holding company.
5 (iv) The minutes of the respective Board meeting of the holding company √
shall state that they have reviewed the affairs of the subsidiary
company also.
5 (v) The Audit Committee of the holding company shall also review the √
financial statements, in particular the investments made by the
subsidiary company
6 (i) a) The CEO and CFO will certify to the Board that they have reveiwed √
the financial statements and believe that these statements do not
contain any materially untrue statement or omit any material fact or
contain statements that might be misleading.
6 (i) b) The CEO and CFO will certify to the Board that they have reveiwed √
the financial statements and believe that these statements together
present a true and fair view of the company’s affairs and are in
compliance with existing accounting standards and applicable laws.

Compliance Status
No.
6 (ii) There are, to the best of knowledge and belief, no transactions No such
entered into by the company during the year which are fraudulent, case
illegal or violation of the company’s code of conduct. occurred
The company shall obtain a certificate from a Professional Accoun-

7 (i) tant/ Secretary (Chartered Accountant/ Cost & Management Accoun-
tant/ Chartered Secretary) regarding compliance of conditions of √
Corporate Governance Guidelines of the Commission and shall send
the same to the shareholders along with the Annual Report on a
yearly basis.
7 (ii) The Directors of the company shall state, in accordance with the
Annexure attached, in the Directors' report whether the company has √
complied with these conditions.
•29
AUDIT COMMITTEE REPORT FOR THE YEAR ENDED JUNE 30, 2017

RENATA LIMITED FINANCIAL HIGHLIGHTS
Figures in Taka (Thousands)
Particulars 2016-17 2016 (6 months) 2015 2014 2013 2012
SUMMARY BALANCE SHEET
Shareholder's Equity
Share Capital 608,965 529,535 529,535 441,279 353,023 282,419
Proposed stock dividend 91,345 79,430 88,256 88,256 70,605
Proposed cash dividend 791,655 450,105 353,023 264,767 169,451
Revaluation surplus 155,285 156,282 156,520 156,999 157,477 157,956
Tax holiday reserve - 315,027 296,337 249,497 206,609
Unappropriated Profit 10,827,285 9,857,260 7,875,242 6,414,819 5,182,094 4,183,440
Shareholder's Fund 12,474,535 10,543,077 9,405,859 7,750,713 6,295,114 5,070,480
Long term & deferred liabilities 1,233,238 1,196,986 1,084,703 1,528,677 1,153,678 1,805,741
Total 13,707,773 11,740,063 10,490,562 9,279,390 7,448,792 6,876,221
Application of Funds
Property, plant and equipment - WDV 10,245,093 9,672,963 9,419,128 8,964,172 8,374,267 6,330,831
Investment & Non-current assets 143,069 251,263 235,464 233,027 199,433 112,026
Current Assets 7,736,183 6,836,121 6,483,183 5,296,370 4,208,713 3,310,221
Current Liabilities (4,416,572) (5,020,284) (5,647,213) (5,214,179) (5,333,621) (2,876,857)
Total 13,707,773 11,740,063 10,490,562 9,279,390 7,448,792 6,876,221
FINANCIAL RESULTS
Turnover (Gross) 18,335,157 8,394,975 14,735,200 12,674,236 10,034,450 8,780,774
Turnover (Net) 16,043,431 7,318,104 12,880,957 11,107,281 8,757,406 7,671,572
Gross Profit 8,102,926 3,779,587 6,545,154 5,688,310 4,670,630 4,051,959
EBITDA 4,523,432 2,285,037 3,542,645 3,200,601 3,146,433 2,379,956
Profit before taxation 3,691,715 1,887,698 2,731,512 2,330,923 1,885,359 1,721,978
Profit after taxation 2,612,142 1,143,353 2,006,641 1,710,863 1,390,164 1,247,528
Total comprehensive income 2,625,511 1,137,138 2,008,012 1,720,209 1,393,928 1,247,275
Dividend 883,000 - 529,535 441,279 353,023 240,056
FINANCIAL PERFORMANCE
Number of shares 60,896,541 52,953,514 52,953,514 44,127,929 35,302,343 28,241,875
Earning per share (Taka) 42.89 18.78 32.95 28.09 22.83 20.49
Dividend per share (Taka) 14.50 - 10.00 10.00 10.00 8.50
Dividend payout % 33.80 - 30.35 25.79 25.39 24.05
Effective Dividend Rate % 1.25 - 0.81 0.74 0.80 0.67
Price Earning ratio - PER 26.98 63.13 37.42 35.02 31.63 36.10
Market price per share on 30 June 1,157.10 1,185.20 1,233.00 984.00 722.00 739.50
Price/Equity Ratio (Times) 115.71 118.52 123.30 98.40 72.20 73.95
Return on Shareholder's Fund % 20.94 10.84 21.33 22.07 22.08 24.60
Current Ratio - (Times) 1.75 1.36 1.15 1.02 0.79 1.15
Net operating cash flow per share (Taka) 57.79 23.63 32.70 28.19 15.05 17.85
Net asset value per share (Taka) 204.85 173.13 154.46 127.28 103.37 83.26
Number of employees 6,087 5,965 5,473 5,002 4,334 3,902
•31
TAKA (MILLIONS)
20000 10000
16043.4
8102.9
8000
12880.9
6545.1
15000
11107.3
5688.3
6000
4670.6
8757.4
4051.9
7671.5
3779.5
10000
7318.1
4000
5000
2000
0 0
2012 2013 2014 2015 2016 2016-2017 2012 2013 2014 2015 2016 2016-2017
6 months 6 months
TURNOVER (NET) GROSS PROFIT

2612.1
3000 1000
883.0
2500
2006.6
800
1710.8
2000
529.5
600
1390.1
1247.5
441.2
1143.3
1500
353.0
400
240.0
1000
200
500
0 0
2012 2013 2014 2015 2016 2016-2017 2012 2013 2014 2015-16 2016-2017
6 months 18 months
NET PROFIT DIVIDEND

2016-17 2015-16
Taka % Taka %
Turnover and other income 16,079,390,589 14,214,304,651
Less: Materials cost & Expenses 6,824,904,595 6,546,928,571
Value Added 9,254,485,994 7,667,376,080
Application:
Salaries and benefits paid to employees 2,442,438,833 26.4% 2,028,597,740 26.5%
Duties, VAT and Tax paid to Government Exchequer 3,816,161,101 41.2% 2,990,275,499 39.0%
Interest paid to Lenders 199,157,898 2.2% 270,445,958 3.5%
Contribution to WPPF 184,585,748 2.0% 160,142,585 2.1%
Dividend to Shareholders 882,999,844 9.5% 529,535,139 6.9%
Retained by the Company 1,729,142,570 18.7% 1,688,379,159 22.0%
Total 9,254,485,994 100.0 7,667,376,080 100%
Salaries and benefits paid to Employees Contribution to WPPF

Duties, VAT and Tax paid to Government Exchequer Dividend to Shareholders
Interest paid to Lenders Retained by the Company
26.4% 26.5%
18.7% 22.0%
9.5% 6.9%
2.0% 2.1%
2.2% 3.5%
41.2% 39.0%
2016-2017 2015-2016
•33
At Renata, corporate social responsibility community through its frontline community health
means caring for our employees, assisting workers (CHWs); adopting a door to door service delivery
disadvantaged members of our society, and approach. BRAC’s international operations replicated the
building a sustainable environment. Details of models used in Bangladesh to provide healthcare
our various initiatives can be found below: services to the community people.
HEALTHCARE FOR Expenditure during the year 2016-17

Taka 1,000,000
EMPLOYEES AND
SAHIC (Society for Assistance to Hearing Impaired
THEIR FAMILIES Children) is a voluntary NGO established in 1987 for
The Renata health program covers all
prevention, early detection and rehabilitation of the
permanent employees, their spouses, and
hearing impaired in Bangladesh, especially children.
children. This comprehensive program
SAHIC runs mobile ear camps that focus on prevention,
includes surgery, hospitalization, as well as
detection, and treatment of hearing impairments
routine doctor visits.
especially in children and also offer ENT (ear, nose, and
throat) treatment. SAHIC also operates a hospital
Expenditure during 2016-17
specializing in ENT and head and neck
Type of care Taka treatment/surgeries that serves all Bangldeshis. The
objective of the society was to prevent an early detect
General 17,907,779 hearing impairment, to treat the diseases that may cause
Gynecology 14,287,521 hearing impairment and rehabilitation of hearing
Cardiovascular 5,891,115 impaired, especially children.
Gastroentology 4,120,739
Accident 3,236,339 Expenditure during the year 2016-17
Taka 300,000
Pediatrics 2,471,315
Dentistry 2,443,383 Centre for Policy Dialogue (CPD) was established in
Oncology 2,391,873 1993 as a non-profit civil society initiative with a view to
Skin & Dermatology 1,068,406 advance the cause of a participatory, inclusive and
Others 2,367,838 accountable development process in Bangladesh and
contribute to Bangladesh’s socio-economic development
Total 56,186,308 and strengthened regional and global economic
integration. In undertaking these endeavours, CPD seeks
SUPPORT TO to particularly give voice to the interests and concerns of
CHARITABLE marginalized stakeholders in the society.
ORGANIZATIONS Expenditure during the year 2016-17

BRAC, an international development Taka 300,000
organization based in Bangladesh, is the
largest non-governmental development Mir Hasan Ali and his wife Sahera Khatun wish to
organization in the world, in terms of number of establish a hospital which will help the poor people.
employees as of September 2016. Established Sahera Hasan Memorial Hospital is the reflection of
by Sir Fazle Hasan Abed in 1972 after the their wish. Professor Dr. Rowshan Ara Begum, their
independence of Bangladesh, BRAC is present middle child established this hospital with her own
in all 64 districts of Bangladesh as well as 13 expense. Her goal is to provide service for the general
other countries in Asia, Africa, and the people. This hospital aimed at providing totally free
Americas. The objective of the BRAC was medical treatment for helpless poor people.
economic development, education, public
health and disaster relief. BRAC Health has Expenditure during the year 2016-17
reached the under-privileged and deprived Taka 300,000

HOPES (Helping Organization for Promising mystery of brains and brain related functions are
and Energetic Students) runs a scholarship neurochemistry, neurophysiology, neurobiochemistry,
program for meritorious students. Renata developmental neurobiology, neuropharmacology,
Limited sponsored students for studying neurotoxicology, neuroimmunology, neuroendocrinolgy,
Medicine under the aegis of this programme. neuroanatomy, organizational and chemical complexities
of nervous system, nerve impulse conduction and
Expenditure during 2016-17 transmission, neurotransmitters, neuromodulators,
Taka 200,000 neurotransmitters-mediating enzymes, their purifications,
characterizations and genetics and molecular biology and
The Neuroscience Research Center of Dhaka chromozomal studies.
University (NRCDU) was created under the
approval of Honorable Vice-Chancellor of Expenditure during 2016-17
Dhaka University and the Syndicate of Dhaka Taka 100,000
University. The neuroscience is a very
promising and potential discipline of life Centre for Cancer Prevention and Research (CCPR)
sciences and it comes to encompass a growing is a voluntary organization working in Bangladesh for
number and diversity of special research areas cancer prevention and control.
involving brains and the related central and
peripheral tissues. The key topics of research Expenditure during 2016-17
and studies to understand and to unfold the Taka 100,000
Title/Organization Taka
BRAC 1,000,000
Society for Assistance to Hearing Impaired Children 300,000
Centre For Policy Dialogue 300,000
Sahera Hasan Memorial Trust 300,000
Helping Organization for Promising and Energetic Students 200,000
Neoroscience Research Centre of Dhaka University 100,000
Centre for Cancer Prevention and Research 90,000
Total 2,290,000
As in the past, Renata Limited continues to fund treatment for Doctors diagnosed with cancer and other
life-threatening illnesses.
Expenditure during 2016-17
Name Title/Organization Taka

Dr. Probodh Kumar Biswas MBBS 1,000,000
Dr. Sharif Ahmed BSMMU 1,000,000
Dr. Iqbal Hossain MBBS 800,000
Dr. Sayed Mahbubul Alam Head of the Department, Surgery, SSMCH 500,000
Total 3,300,000
FINANCIAL ASSISTANCE Expenditure during 2016-17

Taka 2,051,849
TO EX-EMPLOYEES AND
TOTAL CSR EXPENDITURE
THEIR CHILDREN
From time to time Renata Limited provided Taka 63,828,157
financial assistance to ex-employees and their 2.43% of net profit
children.
•35
PHARMACEUTICAL PRODUCTS:
ANTIMICROBIALS:
Trade Name Generic Name Formulation Strength Pack Size

Alsporin Cephalexin Tablet 250mg 10x10’s
Alsporin Cephalexin Tablet 500mg 10x10’s
Amoxi IM/IV Amoxicillin Trihydrate Injectable 500mg Vial 500mg
Bactipront Co-Trimoxazole Tablet 480mg 10x10’s
Bactipront Co-Trimoxazole Tablet 960mg 10x10’s
Bactipront Co-Trimoxazole Oral Suspension 240mg/5ml Bottle 60ml
Bactamox Amoxicillin Trihydrate Tablet 250mg 10x10’s
Bactamox Amoxicillin Trihydrate Tablet 500mg 5x10’s
Bactamox Amoxicillin Trihydrate Ped. Drops 125mg/1.25mL Bottle 15ml
Bactamox Amoxicillin Trihydrate DPS 125mg/5ml Bottle 100ml
Bactamox IM/IV Amoxicillin Trihydrate Injectable 500mg 1’s
Cebuten Ceftibuten Dihydrate Capsule 400mg 2x4’s
Ceftizone IM Ceftriaxone Injectable 250mg Vial 250mg
Ceftizone IM Ceftriaxone Injectable 500mg Vial 500mg
Ceftizone IM Ceftriaxone Injectable 1gm Vial 1gm
Ceftizone IV Ceftriaxone Injectable 250mg Vial 250mg
Ceftizone IV Ceftriaxone Injectable 500mg Vial 500mg
Ceftizone IV Ceftriaxone Injectable 1gm Vial 1gm
Ceftizone IV Ceftriaxone Injectable 2gm Vial 2gm
Ceftipime Cefepime HCL Injectable 500mg Vial 500mg
Ceftipime Cefepime HCL Injectable 1gm Vial 1gm
Ceftipime Cefepime HCL Injectable 2gm Vial 2gm
Cefotax IM/IV Cefotaxime Sodium Injectable 250mg Vial 250mg
Cefotax IM/IV Cefotaxime Sodium Injectable 500mg Vial 500mg
Cefotax IM/IV Cefotaxime Sodium Injectable 1gm Vial 1gm
Cefazid IM/IV Ceftazidime Injectable 250mg Vial 250mg
Cefazid IM/IV Ceftazidime Injectable 500mg Vial 500mg
Cefazid IM/IV Ceftazidime Injectable 1gm Vial 1gm
Cloxicap Cloxacillin Capsule 500mg 10x10’s
Cloxisyrup Cloxacillin Suspension 125mg/5ml Bottle 100ml
Cloxiject IM/IV Cloxacillin Injectable 250mg Vial 250mg
Cloxiject IM/IV Cloxacillin Injectable 500mg Vial 500mg
Doxicap Doxycycline Hydrochloride Capsule 50mg 5x10’s
Doxicap Doxycycline Hydrochloride Capsule 100mg 10x10’s
Covan Vancomycin Injectable 500mg Vial 500mg
Covan Vancomycin Injectable 1g Vial 1g
Diamine Penicillin Benzathine Pen. G Injectable 12,00,000 units Vial 12 lac units
Erythrox Erythromycin Stearate Tablet 250, 500mg 5x10’s
Erythrox Erythromycin Ethyl-succinate DPS 125mg/5ml Bottle 100ml
Furocef IM/IV Cefuroxime Sodium Injectable 250, 750mg Vial 250, 750mg
Furocef IM/IV Cefuroxime Sodium Injectable 1gm Vial 1gm
Furocef IV/IM Cefuroxime Sodium Injectable 1.5gm Vial 1.5gm
Furocef Cefuroxime Axetil Tablet 125mg 2x5’s
Furocef Cefuroxime Axetil DPS 125mg/5ml Bottle 70ml
Flontin Ciprofloxacin Hydrochloride Tablet 250mg 2x10’s
*DPS= Dry Powder for Suspension
•37
Flontin Ciprofloxacin Hydrochloride DPS 250mg/5ml Bottle 60ml
Flontin IV Ciprofloxacin Lactate IV Infusion 2mg/ml Vial 100ml
Flustar Flucloxacillin Sodium Capsule 250mg 12x4’s
Flustar Flucloxacillin Sodium Capsule 500mg 7x4’s
Fluster Flucloxacillin sodium Dry syrup 100 ml 1x1's
Furoclav Cefuroxime 500mg + Clavulanic Acid 125 mg Tablet 500mg 2x4’s
Furoclav Cefuroxime 250mg + Clavulanic Acid 62.5 mg Tablet 250mg 2x6’s
Gatlin Gatifloxacin HCL Tablet 400mg 5x6’s
Iropen IV Imipenem/Cilastatin Injectable 500mg Vial 500mg
Levoking Levofloxacin Hemihydrate Tablet 500mg 5x6’s
Levoking Levofloxacin Hemihydrate Tablet 750mg 3x6’s
Levoking Levofloxacin Hemihydrate Oral Solution 125mg/5ml Bottle 100ml
Meropen IV Meropenem Injectable 250mg Vial 250mg
Meropen IV Meropenem Injectable 500mg Vial 500mg
Meropen IV Meropenem Injectable 1gm Vial 1gm
Orcef Cefixime Tablet 200mg 2x6’s
Orcef Cefixime Tablet 400mg 1x6’s
Orcef Cefixime DPS 100mg/5ml Bottle 70ml/50ml/40ml/30ml
Orcef DS Cefixime DPS 200mg/5ml Bottle 50ml
Orcef Cefixime Capsule 200mg 2x8’s
Orcef Cefixime Capsule 400mg 1x6's
Palcef Cefdinir Capsule 300mg 2x5’s
Palcef Cefdinir DPS 125mg/5ml Bottle 60ml
Palcef DS Cefdinir DPS 250mg/5ml Bottle 30ml
Polycef Cephradine Capsule 250mg 5x4’s
Polycef Cephradine Capsule 500mg 7x4’s
Polycef Cephradine DPS 125mg/5ml Bottle 100ml
Polycef DS Cephradine DPS 250mg/5ml Bottle 100ml
Polycef Cephradine Injectable 250mg Vial 250mg
Polycef Cephradine Injectable 500mg Vial 500mg
Polycef Cephradine Injectable 1g Vial 1g
Polycef PD Cephradine Paed. Drops 125mg/1.25ml Bottle 15ml
Pronapen Procaine penicillin + Penicillin G Injectable 4,00,000 units Vial 4 lac &
8,00,000 units Vial 8 lac units
Qcin Clindamycin Capsule 150mg 5x6’s
Qcin Clindamycin Injectable 300mg/2ml 1x5’s
Qcin Clindamycin Capsule 300mg 5x6’s
Qcin Clindamycin Injectable 600mg/4ml 1x5’s
Renamycin Oxytetracycline Capsule 250mg 60’s
Renamycin Oxytetracycline Injectable 50mg/ml Vial 10ml
Relexid Pivmecillinam Tablet 200mg 3x10’s
Trucef Cefpodoxime Proxetil DPS 40mg/5ml Bottle 50ml
Trucef DS Cefpodoxime Proxetil DPS 80mg/5ml Bottle 50ml
Trucef PD Cefpodoxime Proxetil Ped. Drops 20mg/ml Bottle 15ml
Tazopen Piperacillin + Tazobactam IV Infusion 2.25gm 1x1's
Tazopen Piperacillin + Tazobactam IV Infusion 4.5gm 1x1’s
Toplon Gemifloxacin Tablet 320mg 1x6’s
Vcap Neomycin Sulphate+ Polymyxin B Soft Gelatin 35000 I.U.+ 35000 I.U. 1x6’s
Sulphate+ Nystatin+Metronidazole Capsule 100000 I.U.+ 200mg
Zithrin Azithromycin Capsule 250mg 3x5’s
Zithrin Azithromycin Tablet 250mg, 500mg 3x5’s
Zithrin Azithromycin DPS 200mg/5ml Bottle 15ml/20ml/30ml/35ml/50ml
Zithrin Azithromycin IV Infusion 500mg Vial 500mg
ANTI-HYPERTENSIVE
Cardipin Amlodipine Tablet 5mg 6x10’s
Cardipin Plus Amlodipine+Atenolol Tablet 5mg+50mg 6x10’s
Minipril Enalapril Tablet 5mg/10mg 10x10’s
Evascon Diltiazem Tablet 30mg/60mg 10x10’s
Alphapress Prazosin Hydrochloride Tablet 1mg & 2mg 10x10’s
Ostan Losartan Potassium Tablet 25mg, 50mg 3x10’s, 5x10’s
Ostan Plus Losartan Potassium+ Hydrochlorothiazide Tablet 50/100mg+12.5/25mg 3x10’s
Plagrin Clopidogrel Tablet 75mg 3x10’s
Plagrin Plus Clopidogrel+ Aspirin Tablet 75mg+75mg 3x10’s
Metaloc Metoprolol Tartrate Tablet 50mg 10x10’s
Metaloc Metoprolol Tartrate Tablet 100mg 5x10’s
Pendoril-2 Perindopril Tablet 2mg 2x10’s
Pendoril-4 Perindopril Tablet 4mg 2x10’s
Pendoril Plus-2 Perindopril + Indapamide Tablet 2mg + 0.625mg 2x10’s
Pendoril Plus-4 Perindopril + Indapamide Tablet 4mg + 1.25mg 2x10’s
Valzide-80 Valsartan + Hydrochlorothiazide Tablet 80mg + 12.5mg 4x5’s
Valzide-160 Valsartan + Hydrochlorothiazide Tablet 160mg + 12.5mg 4x5’s
Bisoren-2.5 Bisoprolol Fumarate Tablet 2.5mg 3x10’s
Bisoren-5 Bisoprolol Fumarate Tablet 5mg 3x10’s
Bisoren Plus 2.5 Bisoprolol+Hydrochlorothiazide Tablet 2.5mg+6.25mg 3x10's
Bisoren Plus 5 Bisoprolol+Hydrochlorothiazide Tablet 5mg+6.25mg 3x10's
Uritone-20 Furosemide+ Spironolactone Tablet 20mg + 50mg 3x10’s
Uritone-40 Furosemide+ Spironolactone Tablet 40mg + 50mg 3x10’s
Valdipin Amlodipine+Valsartan Tablet 80mg 3x10's
Valdipin Amlodipine+Valsartan Tablet 160mg 3x10's
Azisan Azilsartan Medoxomil Potassium Tablet 40mg, 80mg 1x10's
LIPID LOWERING AGENT

Zostin Simvastatin Tablet 10mg 3x10’s
Taven Atorvastatin Tablet 10mg/20mg/40mg 3x10’s
Fenobate Fenofibrate Capsule 200mg 5x6’s
Rolip Rosuvastatin Calcium Tablet 5mg, 10mg 3x10’s
ANTI-DIABETIC
Bigmet-500 Metformin HCL Tablet 500mg 10x10’s
Bigmet-850 Metformin HCL Tablet 850mg 10x10’s
Glicron CR Gliclazide CR pellets Capsule 30mg 3x10’s
Glicron Gliclazide Tablet 80mg 3x10’s
Mepid Glimepiride Tablet 1mg 3x10’s
Sitamet Metformin+Sitagliptin Tablet 500mg+50mg 1x10’s
HAIR REGROWTH
Regain 5% Minoxidil Solution 5% 60ml
Regain 2% Minoxidil Solution 2% 60ml
EYE-EAR AND TOPICAL PREPARATIONS

Renamycin Eye/ Oxytetracycline HCL + Ointment 5mg/gm 3.5gm
Ear ointment Polymyxin-B-Sulfate
Renamycin Oxytetracycline HCL + Solution 5mg/ml Vial/Bottle 5ml
otic Solution Benzocaine
Renamycin Oxytetracycline HCL + Topical ointment 30mg/gm Tube 5gm
topical Oint. Polymyxin-B-Sulfate
•39
Deltasone-N Eye/ Prednisolone + Neomycin Drops 0.5% Bottle 5ml
Ear drops
ANTIGOUT
Feburen Febuxostat Tablet 40mg 3x10’s
Feburen Febuxostat Tablet 80mg 1x10’s
NSAIDS
Flexicam Piroxicam Capsule 10mg 10x10’s
Flexicam IM Piroxicam Injection 20mg/ml Amp. 2ml
Celox-R Celecoxib Capsule 100mg 5x10’s
Celox-R Celecoxib Capsule 200mg 5x10’s
Ceclofen Aceclofenac Tablet 100mg 5x10’s
Dysmen Mefenamic Acid Tablet 250mg 10x10’s
Dysmen Mefenamic Acid Tablet 500mg 5x10’s
Rolac Ketorolac Tablet 10mg 4x14’s
Rolac Ketorolac Injectable 10mg/1ml 1x 5’s
Rolac Ketorolac Injectable 30mg/1ml 1x6’s
Rolac Ketorolac Injectable 60mg/2ml 1x2’s
Recox Etoricoxib Tablet 120mg 2x10's
Cartilage Plus Gulcosamine Sulfate+ Tablet 250mg+200mg 5x6’s
Chondroitin Sulfate
Xenapro 250 Naproxen Tablet 250mg 5x10’s
Xenapro 500 Naproxen Tablet 500mg 5x6’s
Rapidol Tramadol Hydrochloride Injectable 100mg/2ml 1x5’s
Maxolax Baclofen Tablet 10mg 3x10’s
Maxolax Baclofen Tablet 5mg 3x10’s
ANTIULCER AGENTS
Norma-H Ranitidine Tablet 150mg 10x10’s
Prazole Omeprazole Capsule 20mg 6x10’s
Maxpro Esomeprazole Tablet 20mg 10x14’s
Maxpro Esomeprazole Tablet 40mg 4x10’s
Maxpro Esomeprazole Capsule 20mg 10x10’s
Maxpro Esomeprazole Capsule 40mg 10x6’s
Maxpro Esomeprazole Injectable 40mg 1x1’s
Maxpro HP Esomeprazole+Amoxicillin+ Capsule+Tablet+ 20mg+500mg+ 14x4’s
Clarithromycin Tablet 500mg
Protonil Pantoprazole Tablet 20mg 5x10’s
Protonil Pantoprazole Tablet 40mg 3x10’s
Profast Rabeprazole Tablet 20mg 6x10's
ANTI-PARASITIC & ANTI-PROTOZOAL AGENTS

Xanita Nitazoxanide Tablet 500mg 3x6’s
Xanita Nitazoxanide DPS 100mg/5ml Bottle 30ml
Xanita Nitazoxanide DPS 100mg/5ml Bottle 60ml
Delentin Pyrantel Pamoate Tablet 125mg 10x10’s
Delentin Pyrantel Pamoate Suspension 50mg/ml Bottle 10ml
Alentin Albendazole Tablet 200mg 2x40’s
Alentin DS Albendazole Tablet 400mg 1x 25’s
Protogyn Tinidazole Tablet 500mg 10x10’s
Protogyn Tinidazole Tablet 1gm 5x4’s

ANTI-FUNGAL AGENT
Lucan-R Fluconazole Capsule 50mg 5x8’s
Lucan-R Fluconazole DPS 50mg/5ml Bottle 35ml
Conasyd Tioconazole Cream 1% dermal Tube 10gm
ANTI-TUBERCULOSIS AGENT
Streptomycin Streptomycin Sulfate Injectable 1gm Vial 1gm
ANTI-SPASMODIC
Ranicon Oxyphencyclimine HCL Tablet 5mg 50x10’s
Algin Tiemonium Tablet 50mg 10x10’s
Algin Tiemonium Injectable 5mg/2ml 1x5’s
Algin Tiemonium Syrup 10mg/5ml 100ml
STEROID
Deltasone Prednisolone Tablet 5mg 25x10’s, 50x10’s
Deltasone Prednisolone Tablet 10mg 10x10’s
Deltasone Prednisolone Tablet 20mg 5x10’s
Deltasone Prednisolone Oral Solution 5mg/5ml Bottle 100ml
Deltasone Prednisolone Oral Solution 5mg/5ml Bottle 50ml
Dexatab Dexamethasone Tablet 0.5mg 25x10’s
Dexa IM/IV Dexamethasone Injectable 5mg/ml 10’s
COSMETIC HEALTH CARE PRODUCT: (ANTI-ACNE AGENT)

Trinon Cream Isotretinoin Cream 0.025%, 0.05% w/w Tube 10gm
Caress Cream Benzoyl Peroxide Cream 2.5%, 5% w/w Tube 15gm
ANTI-OSTEOPOROTIC
Ivana Ibandronic Acid Tablet 150mg 1’s
VITAMINS & MINERALS

Beconex Vitamin B-Complex Capsule - Bottle 30’s
Beconex Vitamin B-Complex Syrup - Bottle 100ml
Beconex Vitamin B-Complex Syrup - Bottle 200ml
Beconex Vitamin B-Complex Injectable - Vial 10ml
Beconex ZI Iron+Vitamin B-Complex & Zinc Syrup - Bottle 100ml
Beconex ZI Iron+Vitamin B-Complex & Zinc Syrup - Bottle 50ml
Becosules Vitamin B-Complex + Vit-C Capsule - 16x6’s
Becosules Gold Vitamin B-Complex + Vit-C Capsule - 15x6’s
Chewrol Iron + Folic Acid Chewable Tablet 100mg + 350mcg 5x6’s
Calcin Calcium Carbonate Tablet 500mg 5x10’s
Calcin-D Calcium+Vit-D Tablet 500mg+200IU 6x10’s, Pot 15’s, Pot 30’s
Calcin-O Calcium Orotate Tablet 400mg 3x10's
Calcin-O DS Calcium Orotate Tablet 740mg 3x10's
Calcin-M Calcium Carbonate+Vit-D+Mineral Tablet - 4x10’s, Pot 30’s
E-gel Vitamin E Soft Gelatin Capsule 200mg 10x10’s
E-gel DS Vitamin E Soft Gelatin Capsule 400mg 5x10’s
Ferix Carbonyl Iron, Folic Acid and Zinc Capsule 50mg+500mcg+61.8mg 6x10’s
Kiddi Multivitamin+Codliver oil Syrup - Bottle 100ml
Kiddi Multivitamin+Codliver oil Syrup - Bottle 200ml
Pushtikona Micronutrient Powder Powder in Sachet - 1x30’s
•41
Mazic 20 Zinc Sulfate Monohydrate Tablet 20mg 3x10’s
Mazic Jr Zinc Sulfate Monohydrate Syrup 4.05mg/5ml Bottle 100ml
Mazic Zinc Sulfate Monohydrate Syrup 10mg/5ml Bottle 100ml
Mazic DS Zinc Sulfate Monohydrate Syrup 20mg/5ml Bottle 100ml
Neurobest Vit B1+B6+B12 Tablet 100mg+200mg 6x10’s
+200mcg
Neurobest Vit B1+B6+B12 Injectable 100mg+100mg 2x5’s
+1mg
Lucent Calcitriol Soft Gelatin Capsule 0.25mcg 3x10’s
Calciferol Cholecalciferol IM Injection 200000 IU/ml 1’s
ANTI-OXIDANT
Proxid Antioxidant (Vit A,C,E) Tablet - Bottle 20’s
ANTI-ALLERGIC
Fenadin Fexofenadine HCL Tablet 60mg 3x10’s
Fenadin Fexofenadine HCL Suspension 30mg/5ml Bottle 30ml
Fenadin Fexofenadine HCL Suspension 30mg/5ml Bottle 50ml
Allermine Chlorpheniramine Maleate Syrup 2mg/5ml Bottle 100ml
Tiramin Cetirizine Tablet 10mg 10 x10’s
CNS-PRODUCT
Gaba Gabapentin Tablet 300mg 3x10’s
Gaba-P Pregabalin Capsule 25mg 5x6's
Gaba-P Pregabalin Capsule 50mg 3x10's
Gaba-P Pregabalin Capsule 75mg 3x10’s
Renxit Flupentixol+Melitracen Tablet 0.5mg+10mg 10x10’s
Norry Bromazepam Tablet 3mg 5x10’s
Cabretol Carbamazepine Tablet 200mg 5x10’s
Cabretol Carbamazepine CR Tablet 200mg 5x10’s
Cabretol Carbamazepine Syrup 100mg/5ml Bottle 100ml
Sperid Risperidone Tablet 1mg 5x10’s
Sperid Risperidone Tablet 2mg 5x10’s
Denixil Clonazepam Tablet 0.5mg, 2mg 5x10’s, 3x10’s
Midzo Midazolam Tablet 7.5mg 3x10’s
Midzo Midazolam Injection 15mg/3ml 1’s
HORMONE
Normens Norethisterone Acetate Tablet 5mg 10x10’s
Bredicon Desogestrel Tablet 75mcg 1x28’s
Criptine Bromocriptine Mesilate Tablet 2.5mg 1x30’s
Emcon 1 Levonorgestrel Tablet 1.5mg 1x1’s
Letrol Letrozole Tablet 2.5mg 2x5’s
Ovulet 50 Clomifene Citrate Tablet 50mg 1x10’s
Ovulet 100 Clomifene Citrate Tablet 100mg 1x5’s
Medrogest Medroxyprogesterone Acetate Tablet 5mg, 10mg 3x10’s
Thyrox 50 Levothyroxine Sodium Tablet 50mcg 3x30’s
Menorest Tibolone Tablet 2.5mg 1x28’s
Desolon Desogestrel+Ethinylestradiol Tablet 0.15mg+0.03mg 1x21’s
Giane 35 Cyproterone Acetate + Tablet 2.0mg+ 1x21’s
Ethinylestradiol 0.035mg
Nandron Nandrolone Phenylpropionate Injection 25mg/ml 1x5’s
Nandron Nandrolone Decanoate Injection 50mg/ml 1x1’s

Gestrenol Allylestrenol Tablet 5mg 5x10’s
Regumen Lynestrenol+Ethinylestradiol Tablet 2.5mg+0.05mg 1x21’s
Estracon Conjugated Estrogens Tablet 0.625mg 3x10’s
Microgest Natural Micronized Progesterone Capsule 100mg 3x10's
Microgest Natural Micronized Progesterone Capsule 200mg 3x10's
Novelon Drospirenone and Ethinylestradiol Tablet 3mg & 0.03mg 1x21's
Novelon lite Drospirenone and Ethinylestradiol Tablet 3mg & 0.02mg 1X24's
Danzol Danazol Capsule 100mg & 200mg 3 x10’s, 2x10’s
Cabolin Cabergoline Tablet 0.5mg 2x2’s
Indula Misoprostol Tablet 200mcg 3x10’s
Mif Mifepristone Tablet 200mg 1x3’s
Androcap Testosterone undecanoate Capsule 40mg 3X10’s
Gynova Micronized estradiol Tablet 2mg 3X10’s
5X Ulipristal Acetate Tablet 30mg 1’s
Mercazole Carbimazole Tablet 5mg 6X10’s
AB Kit Mifepristone+Misoprostol Tablet 200mg+200mcg 1X5’s
ANTI-CANCER
Metorax Methotrexate Tablet 2.5mg, 10mg 3x10’s
Proscan Flutamide Tablet 250mg 3x10’s
Sofenib Sorafenib Tablet 200mg 3x4’s
Erloren Erlotinib Tablet 100mg 1x7’s
Erloren Erlotinib Tablet 150mg 1x7’s
Tyrokin Imatinib Tablet 400mg 1x10’s
OXYTOCIC
Arbecin Carbetocin IV/IM Injection 1ml 1X1’s
Oxyton Oxytocin Injection 5 I.U. 2x5’s
ANTI-FIBRINOLYTICS
Xamic Tranexamic Acid Capsule 500mg 2x10’s
Xamic Tranexamic Acid Injectable 500mg/5ml 1x5’s
ANTI-ASTHMA
Trulax Levosalbutamol Syrup 1mg/5ml Bottle 100ml
Totifen Ketotifen Tablet 1mg 10x10’s
Totifen Ketotifen Syrup 1mg/5ml Bottle 100ml
Odmon Montelukast Chewable Tablet 4mg 3x10’s
Odmon Montelukast Tablet 5mg 1x10’s
Odmon Montelukast Tablet 10mg 2x10’s
EXPECTORANT
Topex Guaiphenesin Pseudoephedrine Syrup 131.25mg/5ml Bottle 100ml
Recof Ambroxol Hydrochloride Syrup 15mg/5ml Bottle 100ml
Recof PD Ambroxol Hydrochloride Paed. Drops 6mg/ml Bottle 15ml
Detus Dextromethorphan+Pseudoephedrine+Triprolidine Syrup 10mg+30mg+1.25mg Bottle 100ml
GASTROPROKINETIC AGENTS
Domiren Domperidone Tablet 10mg 15x10’s
Domiren PD Domperidone Paed. Drops 5mg/ml Bottle 15ml
Domiren Domperidone Suspension 5mg/5ml Bottle 60ml
ORAL REHYDRATION SALINE

Saline-R ORS Salt Powder 10.25gm/500 ml Sachet 20’s
NARCOTIC ANALGESIC
Fentanyl Fentanyl Citrate IV Injection 100mcg/2ml 1x5’s
•43
ANTIPYRETIC/ ANALGESIC
Pyralgin Paracetamol Tablet 500mg 50x10’s
Pyralgin Paracetamol Suspension 120mg/5ml Bottle 60ml
Pyra Plus Paracetamol+Caffeine Tablet 500mg+65mg 15x10’s
AMINO ACID SUPPLEMENT

Protemin 5% Composite Amino Acid IV Infusion - Bottle 500ml
Solution with D-sorbitol
ANTIEMETIC
Emeren Ondansetron Tablet 4mg 3x10’s
Emeren Ondansetron Tablet 8mg 3x10’s
Emeren Ondansetron Injectable 8mg/4ml 1x5's
Emeren Ondansetron Syrup 4mg/5ml Bottle 50ml
ANESTHETIC
Neos-R Neostigmine Injectable 5ml, 1ml 1x5’s
Kain Ketamine Injectable 50mg/ml 1’s
Sivicaine Heavy Bupivacaine+Dextrose Injectable 5mg+80mg 1x5’s
Epidron Ephedrine Injectable 5mg 1x5’s
ANTIVIRAL
Enteca Entecavir Tablet 0.5mg 1x10’s
Buviren Sofosbuvir Tablet 400mg 1x6’s
OTHERS
Normanal Diosmin + Hesperidin Tablet 450mg + 50mg 3x10’s
Tegarid Tegaserod Tablet 6mg 3x10’s
Titolax Lactitol Monohydrate Powder 10gm Sachet 10’s
Honycol Liquid Sugar & Glycerol Linctus (0.75 ml+1.93 ml)/5ml Bottle 100ml, 200ml
Mez IV Metronidazole IV Infusion 0.5% W/V Bottle 100ml
Tolter Tolterodine Tartrate Tablet 1mg & 2mg 3x10’s
Phenocept Mycophenolate Mofetil Tablet 500mg 3x10’s
Feristar Iron Sucrose Injectable 100mg Iron/5ml 1’s
Erecta Sildenafil Tablet 50mg 1x4’s
Erecta Sildenafil Tablet 100mg 1x4’s
Tritin Trimebutine Maleate Tablet 100mg 3x10's
ANIMAL HEALTH PRODUCTS

ANTIBIOTIC
Renamycin AF Tablet Oxytetracycline USP Tablet 500mg 5 x 4’s
Renamycin Injectable Solution Oxytetracycline USP Injection 50mg/ml 10ml
Renamycin-100 with PVP Oxytetracycline USP Injection 100mg/ml 10ml, 100ml
Renamycin LA Oxytetracycline USP Long Acting Injection 200mg/ml 10ml
Pronapen 40 lac Procaine Penicillin BP Injection 3MIU+1MIU Vial 40 lac
Benzyl Penicillin Sodium
Streptopen Procaine Penicillin BP Injection 1.5MIU+ Vial 0.5g, 2.5g
Benzyl Penicillin Sodium 0.5MIU+2.5gm
Streptomycin USP
Gentaren Gentamicin Sulphate Injection 100mg/ml 10ml & 100ml
Renamox Amoxycillin Tablet 500mg 20’s
Amcox Amoxycillin+Cloxacillin Injection 1.25gm+1.25gm Vial 2.5gm
Rena-CT Colistin, Trimethoprim Powder 9.60gm+20gm 100gmX10's
Tilmisin Tilmicosin Solution 25mg 100ml
CEPHALOSPORIN
Renacef Ceftriaxone Injection 1gm, 2gm Vial 1gm & 2gm

Trade Name Generic Name Formulation Strength Pack
SULPHONAMIDES
Diadin Sulphadimidine Sodium BP Injection 333mg/ml 30ml, 100ml
Diadin Sulphadimidine BP Bolus 5gm 10 x 2’s
Sulpha Plus Sulphadiazine USP Bolus 1.583gm+ 10 x 2’s

Sulphadimidine BP 1.583gm+
Sulphapyridine USP 1.583gm+
Streptomycin Sulphate USP 0.313gm
Sulpha -3 Sulphadiazine USP Bolus 1.666gm+ 10 x 2’s
Sulphadimidine BP 1.666gm+
Sulphapyridine USP 1.666gm
Renatrim Sulphadiazine + Trimethoprim Bolus 1000mg+200mg 10 x 2’s
ANTHELMINTIC
Helmex Albendazole USP Tablet 600mg 5 x 4’s
Nitronex 34% Nitroxynil BP Injection 340mg/ml 10ml, 30ml
Tremacid Oxyclozanide BP Tablet 1000mg 5 x 4’s
Renadex Triclabendazole + Tablet 900mg+600mg 10 x 2’s
Levamisole
ANTIPROTOZOAL
Ectorid Imidocarb Dipropionate Injection 133.26mg/ml 10ml
Renamet Bolus Metronidazole Bolus 2gm//Bolus 5 x 4’s
ANTI-HISTAMINIC
Dellergen Promethazine HCL USP Injection 50mg/ml 10ml
Dellergen Promethazine HCL USP Bolus 150mg/Bolus 10 x 4’s
Renacin Clorpheniramine Maleate Injection 10mg/ml 10ml, 100ml
NSAID
Renafen Ketoprofen Injection 100mg/ml 5ml, 10ml
Pyralgin Paracetamol Tablet 2gm 10 x 2’s
Fevenil Tolfenamic Acid Injection 40mg/ml 10ml
GLUCOCORTICOID
Predexanol - S Prednisolone Anhydrous USP Injection 7.5mg+2.5mg/ml 10ml
Dexamethasone Trimethyl
Acetate USP
APPETIZER & RUMENOTORIC

Anorexon Cobalt Sulphate BP Tablet 50mg+ 15 x 4’s
Dried Ferrous Sulfate USP 100mg+
Thiamine Mononitrate USP 25mg+
Vitamin B12 USP 20mcg+
Choline Bitartrate BP 9.1mg
Anorexon DS Cobalt Sulphate BP Bolus 100mg+ 10 x 4’s
Dried Ferrous Sulfate USP 200mg+
Thiamine Mononitrate USP 50mg+
Vitamin B12 USP 40mcg+
Choline Bitartrate BP 18.2mg
Rumenton Antimony Potassium Tartrate USP Bolus 2gm+2gm 10 x 2’s
Ferrous Sulphate USP
Stomavet Ammonium Bi-carbonate BP Powder 5gm+ 20g x 20
Nuxvomica Powder BP 1.4gm+
Sodium Bi-carbonate BP 13gm+
Gentian Powder BP .3gm+
Ginger Powder BP .3gm
•45
METABOLIC
Cal-D-Mag (with phosphorus) Calcium Gluconate USP Injection 20.8+20.0+5.0+0.1mg/ml 200ml
Dextrose USP
Magnesium Hypophosphate BP
Chlorocresol (as preservative) BP
Vitaphos Toldimphos Injection 200mg+0.05mg/ml 30ml
Cyanocobalamine (Vit B12) BP
Catophos Butaphosphan Injection 100mg+0.05mg/ml 100ml, 30ml
Cyanocobalamine (Vit B12) BP
Levabon Rumen E Saccharomyces Cerevisiae Powder 100cfu/gm 20kg
Rumen E Saccharomyces Cerevisiae Powder 100cfu/gm 100g
HORMONE PRODUCTS
Ovurelin Gonadorelin (as Acetate) Injection 100mcg/ml 20ml
Ovuprost Cloprostenol (as Sodium) Injection 250mcg/ml 20ml
VITAMIN-MINERAL INJECTION
Hemovit Iron+Copper+ Injection 15mg+0.2mg+ 10ml
cobalt+Vitamin B-complex 0.7mg+202.86mg/ml
Renasol AD3E Vitamin A, D3 & E Injection 0.5MIU+0.075MIU+ 10ml, 30 ml
50mg/ml
POULTRY PRODUCTS
Enrocin Enrofloxacin Oral Solution 100mg/ml 100ml, 1L
Micronid Erythromycin Thiocyanate Powder 180mg+150mg+30mg/gm 10g, 100g
Sulphadiazine USP
Trimethoprim USP
Sultrik Sulfachloropyridazine+ Powder 100mg+20mg/gm 100g
Trimethoprim
Mycostop Tylosin BP Powder 200mg/gm 100g, 1kg
Doxivet Doxycycline USP Powder 100mg/gm 100g
Renatrim Sulphadiazine BP Suspension 400mg+80mg/ml 100ml
Trimethoprim BP
Renamox 15% Amoxycillin Powder 150mg/gm 100g, 500g, 1kg
Renamox 30% Amoxycillin Powder 300mg/gm 100g, 500g, 1kg
Renaquine 10% Flumequine INN Powder 100mg/gm 100g
Renaquine 20% Flumequine INN Liquid 200mg/ml 100ml
Renagard 45% Tiamulin Hydrogen Fumarate Powder 450mg/gm 100g
Renaflox Ciprofloxacin Powder 200mg/gm 100g
NDoxi Doxycycline+Neomycin Powder 150mg+ 100g
150mg/gm
ANTHELMINTIC
Avinex Levamisole HCL USP Powder 300mg/gm 10g, 100g
ANTI-COCCIDIAL
Coxicure Sulphaclozine Sodium Powder 300mg/gm 100g
Monohydrate INN
Renazuril Suspension Toltrazuril Suspension 25mg/ml 100ml
ELECTROLYTE
Renalyte Vitamin A Powder 2MIU+ 1kg
Sodium Bi-carbonate BP 500gm+
Sodium Chloride BP 266gm+
Dextrose BP 179.6gm+
Potassium Chloride BP 50gm/kg

NUTRITION PRODUCTS
Rena WS Vit B Complex+A+ Powder 111.52+0.1MIU+ 10g, 50g,
D+E+C 0.025MIU+20mg 100g,1kg
+300mg/gm
Rena B+C Vitamin B Complex & Vit. C Powder 22.12mg+5mg/gm 100g, 500g, 1kg
Rena C Ascorbic Acid Powder 999.00mg/gm 100g, 1kg
Rena K Menadione Sodium bisulphite Powder 100mg/gm 10g
Renasol AD3E Vitamin A, D3 + E Oral Solution 0.1MIU+0.02MIU 100ml, 1L
+20mg/ml
Renavit DB Vitamin & Mineral Premix Powder 100g, 500g, 1kg
Renavit DB Plus Vitamin & Mineral Premix Powder 1kg
Rena Sel-E Vitamin E + Selenium Oral Solution 80mg+0.6mg/ml 100ml, 1L
NUTRITIONAL PREMIX
Rena Breeder Vitamin+Mineral Powder 44.99gm+68.42gm/kg 2.5kg
Rena Broiler Vitamin+Mineral Powder 41.73gm+72.38gm/kg 2.5kg
Rena Grower Vitamin+Mineral Powder 31.06gm+52.36gm/kg 2.5kg
Rena Layer Vitamin+Mineral Powder 35.38gm+47.59gm/kg 2.5kg
Rena Fish Vitamin+Mineral Powder 43.75gm+53.55gm/kg 1kg
IMPORTED
Availa 4 Zinc+Manganese Powder 51.5mg+28.6mg 10gm,100gm
+Copper +18.0mg+1.8mg & 500gm
+Cobalt+AminoAcid +204.8mg/gm
Availa Z/M Zinc+Manganese Powder 40mg+ 500gm
Chealeted with AA 40mg/gm
Biotronic SE Formic Acid+Propionic Acid Powder 23mg+5mg/ml 25kg
Biotronic SE Forte Liquid Formic Acid+Propionic Acid+ Oral Solution 23mg+5mg+ 100ml, 1L
Lactic Acid 1mg/ml
Mycofix Plus 3.0 SBM+Epoxidase+Esterase+ Powder NA 1kg & 25kg
Phytogenic+Phycophytic
Mycofix Select 3.0 SBM+Epoxidase+ Powder NA 1kg & 25kg
Phytogenic+Phycophytic
Mycofix ECO 3.0 SBM+Phytogenic Powder NA 1kg & 25kg
Mycofix Secure Smectite with Bentonite Powder 100% 25kg
Biomin Phytase 5000 Phytase Enzyme Powder 5000FTU/gm 25kg
Rena Phytase 400 Phytase Enzyme Powder 400FTU/gm 1kg
Lisovit Muramidase+Peroxidase+ Powder NA 10gm, 100gm
FOS+Vitamin E+C & 1kg
Vigest Vitamin+Mineral Oral Solution 3.58mg+0.078mg 500ml, 2L
+Amino Acid +67.33mg/ml
Poultry TMO Zinc+Manganese+ Powder 32mg+ 25kg
Copper+ 32mg+8mg+
Iron+Iodine+ 5mg+1.2mg+
Selenium+MHA 0.15mg+400mg/gm
Mintrex PSe Zinc+Manganese+ Powder 40mg+40mg+ 25kg
Copper+ 20mg+
Selenium+MHA 3mg+540mg/gm
Cibenza DP 100 Special Protease Enzyme Powder 0.6MIU/gm 25kg
Poultry Star Sol Pro & Prebiotic Powder NA 10gm
Poultry Star me Pro & Prebiotic Powder NA 25kg
NephCare Liquid Nephrotonic Oral solution NA 100ml
Digesterom PEP MGE Phytogenic Growth Promoter Powder NA 25kg
Digesterom PEP 125 Phytogenic Growth Promoter Powder NA 25kg
Ozinc Organic Zinc Solution 85mg/ml 100ml
RenA Tox Liquid Toxinbinder Solution NA 100ml, 1L
•47
Rena Calp Calcium+Phosphorous Solution 24.02mg+8.39mg/ml 1L, 5L
Renaliv Herbal Liver Tonic Solution NA 1L
Rescure Herbal Expectorant Solution NA 100ml, 1L
FAM 30 Iodophore Liquid 27.5mg/ml 100ml, 1L,
GPC8 Gluataraldehyde+QAC Liquid 120mg+40mg/ml 100ml, 1L,
Shift Trisodium based Detergent Solution 113mg/ml 1L, 25L
Renazyme CS Xylanase, Cellulase, 10000 IU, 200000 IU,
Beta-glucanase, Amylase, 1400 IU, 7000 IU,
Protease, Mannanase, 10 IU, 100 IU,
Pectinase Solution 5 IU 100ml
Availa Zn 120 Zinc amino acid complex Powder 120mg/gm 100gmX10's
GasFree Saponin+Glycocompound Powder 100gmX10's
VACCINES
LIVE VACCINES
IZOVAC Clone Live Attenuated NDV Eye Drop/ Clone 106EID50 1000 Dose
Via Dringking Water
IZOVAC Gumboro 2 Live Intermediate IBDV Eye Drop/ winterfield 1000 Dose
Via Dringking Water 2512 103EID50
IZOVAC Gumboro 3 Live Intermediate Plus IBDV Eye Drop winterfield 1000 Dose
/Via Dringking Water 2512 102.7EID50
IZOVAC B1 Hitchner Live Attenuated NDV Eye Drop/ B1 Hitchner 1000 Dose
Via Dringking Water 106.5EID50
IZOVAC H120 LaSota Live Attenuated NDV Eye Drop/ lasota 106EID50 1000 Dose
Live Attenuated IBV Via Dringking Water H120 106EID50
IZOVAC LaSota Live Attenuated NDV Eye Drop/ lasota 106EID50 1000 Dose
Via Dringking Water
IZOVAC Marek Virus in oil emulsion Turkey Marek's disease
Bivalent+Diluent Herpes Virus, Rispens Suspension strain FC126 500ml
IIZOVAC ND-EDS-IB-IBD Virus in oil emulsion 50 PD50, 108 EID50,
ND, EDS, IB, IBD Suspension 106 EID50, 107.5 EID50 500ml
KILLED VACCINES
IZOVAC ND Inactivated NDV Injection lasota 50 PD50 500 Dose
IZOVAC ND-EDS Inactivated NDV Injection lasota 50 PD50 500 Dose
Inactivated EDS EDS 76 50 108 EID50
IZOVAC Coryza 3 Inactivated Coryza Injection H. Paragallinarum 500 Dose
A, B & C 5x109
AQUA PRODUCTS
Aquastar Pond Water Probiotic Powder NA 500gm, 1kg
Biomin Aquaboost Amino Acid Complex Powder NA 1000gm, 25kg
Hepa Protect Aqua Flavanoids Powder NA 100gm, 25kg
Oxy-Ren Sodium Carbonate Peroxhydrate Powder 130mg/gm 1kg
Aquastar grow out Feed Probiotic Powder NA 100gm
Levabon Aqua Saccharomyces cerevisiae Powder 10^12 cfu/gm 100gmX5's
Oxy-Ren Sodium carbonate peroxyhydrate Tablet 130mg/gm tablet 1kg
Zeoren Alluminium sodium silicate Granular 750mg/gm 10kg
Gas FreeAqua Yucca Powder NA 100g

as at and for the year ended June 30, 2017
•49
We have audited the accompanying financial preparation and fair presentation of the financial statements in order to
statements of Renata Limited, which comprise design audit procedures that are appropriate in the circumstances, but
the statement of financial position as at 30 not for the purpose of expressing an opinion on the effectiveness of the
June 2017 and the statement of profit or loss entity’s internal control. An audit also includes evaluating the
and other comprehensive income, statement appropriateness of accounting policies used and the reasonableness of
of changes in equity and statement of cash accounting estimates made by management, as well as evaluating the
flows for the year then ended, and a summary overall presentation of the financial statements.
of significant accounting policies and other We believe that the audit evidence we have obtained is sufficient and
explanatory information. appropriate to provide a basis for our audit opinion.
Management's Responsibility for the Opinion

Financial Statements In our opinion, the financial statements prepared in accordance with
Management is responsible for the preparation Bangladesh Financial Reporting Standards (BFRSs), give a true and fair
and fair presentation of these financial view of the financial position of Renata Limited as at 30 June 2017 and
statements in accordance with Bangladesh the results of its financial performance and its statement of cash flows for
Financial Reporting Standards, and for such the year then ended and comply with the Companies Act 1994, the
internal control as management determines is Securities and Exchange Rules 1987 and other applicable laws and
necessary to enable the preparation of regulations.
financial statements that are free from material
misstatement, whether due to fraud or error. We also report that:
Auditors' Responsibility a) we have obtained all the information and explanations which to the
Our responsibility is to express an opinion on best of our knowledge and belief were necessary for the purpose of
these financial statements based on our audit. our audit and made due verification thereof;
We conducted our audit in accordance with b) in our opinion, proper books of account as required by law have been
Bangladesh Standards on Auditing. Those kept by the company so far as it appeared from our examination of
standards require that we comply with ethical those books;
requirements and plan and perform the audit to c) the statement of financial position and statement of profit or loss and
obtain reasonable assurance whether the other comprehensive income dealt with by the report are in
financial statements are free from material agreement with the books of account; and
misstatement. d) the expenditure incurred was for the purpose of the company’s
business.
An audit involves performing procedures to
obtain audit evidence about the amounts and
disclosures in the financial statements. The
procedures selected depend on our judgment,
including the assessment of the risks of
material misstatement of the financial
statements, whether due to fraud or error. In
making those risk assessments, we consider
internal control relevant to the entity’s Place: Dhaka S. F. Ahmed & Co.
Date: 21 October 2017 Chartered Accountants

RENATA LIMITED
STATEMENT OF FINANCIAL POSITION
Amount in Taka
AS AT 30 JUNE 2017
Notes 30 June 2017 30 June 2016
ASSETS
Non-current assets
Property, plant and equipment 5 9,172,888,570 8,969,965,833
Capital work-in-progress 6 1,072,204,572 702,996,708
Investment in subsidiaries 7 143,069,376 143,069,376
10,388,162,518 9,816,031,917
Current assets
Inventories 8 3,229,222,893 3,361,710,600
Trade receivables 9 1,995,758,417 2,029,259,467
Other receivables 10 793,117,602 760,474,958
Advances, deposits and prepayments 11 295,949,018 234,064,598
Investment in shares and others 12 804,899,466 108,193,744
Cash and cash equivalents 13 617,236,028 450,611,442
7,736,183,424 6,944,314,809
TOTAL ASSETS 18,124,345,942 16,760,346,726
EQUITY AND LIABILITIES

Shareholders' equity
Share capital 14 608,965,410 529,535,140
Revaluation surplus 15 155,285,034 156,281,949
Available for sale reserve 16 21,635,191 8,266,952
Retained earnings 17 11,688,650,069 9,848,993,073
12,474,535,704 10,543,077,114
Non-current liabilities
Deferred tax liability 18 1,137,327,569 946,889,523
Long term loan - net off current portion 19 95,910,932 250,095,990
1,233,238,501 1,196,985,513
Current liabilities
Short term bank loan and overdrafts 20 1,968,852,024 2,598,322,461
Long term loan - current portion 19 161,200,000 156,800,003
Trade payables 21 180,070,553 281,252,786
Accruals 22 681,270,985 509,252,776
Provisions and other liabilities 23 649,415,862 512,443,278
Unclaimed dividend 24 26,585,338 16,758,740
Provision for taxation 25 749,176,975 945,454,055
4,416,571,737 5,020,284,099
TOTAL EQUITY AND LIABILITIES 18,124,345,942 16,760,346,726
Net asset value per share (NAV) 204.85 173.13
The annexed notes 1 to 41 form an integral part of these financial statements.
CEO & Managing Director Director Chief Financial Officer

As per our annexed report of same date.
Place: Dhaka
Date: 21 October 2017 S. F. Ahmed & Co
Chartered Accountants
•51
RENATA LIMITED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2017
Amount in Taka
Notes 2016-2017 2015-2016

Turnover 26 16,043,431,021 14,200,840,456
Cost of sales 27 (7,940,504,696) (6,966,978,424)
Gross Profit 8,102,926,325 7,233,862,032
Administrative, selling and distribution expenses 28 (4,063,427,289) (3,613,885,944)
Other income 29 35,959,568 13,464,195
Operating profit 4,075,458,604 3,633,440,283
Finance costs 30 (199,157,898) (270,445,958)
Profit before contribution to WPPF 3,876,300,706 3,362,994,325
Contribution to WPPF (184,585,748) (160,142,585)
Profit before tax 3,691,714,958 3,202,851,740
Tax expenses
Current tax 25 (891,379,438) (734,412,361)
Deferred tax 18 (188,193,106) (250,525,081)
(1,079,572,544) (984,937,442)
Net profit after tax for the year 2,612,142,414 2,217,914,298
Other comprehensive income

Item that may be reclassified to profit or loss:
Unrealized gain/(loss) on quoted shares, net of tax 16 13,368,239 (3,195,776)
Total comprehensive income for the year 2,625,510,653 2,214,718,522
Basic earnings per share 31 42.89 36.42

Place: Dhaka
Date: 21 October 2017 S. F. Ahmed & Co

RENATA LIMITED
STATEMENT OF CHANGES IN EQUITY
Amount in Taka
Share Revaluation Tax holiday Available for Retained

capital surplus reserve sale reserve earnings Total
Balance at 01 July 2015 529,535,140 156,758,862 296,337,069 11,462,728 7,334,105,821 8,328,199,620

Adjustment of deferred tax liability due to extra
depreciation charged to revaluation reserve - 158,972 - - - 158,972
Depreciation adjustment on revalued assets - (635,885) - - 635,885 -
Net profit after tax for the year - - - - 2,217,914,298 2,217,914,298
Unrealized gain/(loss) on quoted shares - - - (3,195,776) - (3,195,776)
Addition of tax holiday reserve - - 18,690,370 - (18,690,370) -
Transfer of tax holiday reserve - - (315,027,439) - 315,027,439 -
Balance at 30 June 2016 529,535,140 156,281,949 - 8,266,952 9,848,993,073 10,543,077,114
Balance at 01 July 2016 529,535,140 156,281,949 - 8,266,952 9,848,993,073 10,543,077,114

Stock dividend issued 79,430,270 - - - (79,430,270) -
Final dividend - - - - (450,104,869) (450,104,869)
Interim dividend - - - - (243,586,164) (243,586,164)
depreciation charged to revaluation reserve, net (361,030) - - - (361,030)
Depreciation adjustment on revalued assets - (635,885) - - 635,885 -
Net profit after tax for the year - - - - 2,612,142,414 2,612,142,414
Unrealized gain/(loss) on quoted shares - - - 13,368,239 - 13,368,239
Balance at 30 June 2017 608,965,410 155,285,034 - 21,635,191 11,688,650,069 12,474,535,704
•53
RENATA LIMITED
STATEMENT OF CASH FLOWS
Amount in Taka
2016-2017 2015-2016
A. Cash flows from operating activities

Collection from customers and other income 18,983,151,142 16,569,155,698
Payment of VAT (2,291,726,115) (2,053,487,906)
Payment to suppliers and employees (11,885,657,363) (11,772,145,818)
Cash generated by operations 4,805,767,664 2,743,521,974
Finance costs (199,157,898) (212,290,213)
Payment of tax (1,087,656,518) (540,383,776)
Net cash generated from operating activities 3,518,953,248 1,990,847,985
B. Cash flows from investing activities

Purchase of property, plant and equipment (1,204,948,013) (1,127,064,774)
Investment in shares and others (696,705,722) 16,412,853
Sale proceeds of property, plant and equipment 13,765,005 3,575,000
Net cash used in investing activities (1,887,888,730) (1,107,076,921)
C. Cash flows from financing activities

Bank loan (repaid) / received (net) (779,255,497) (360,022,264)
Dividend paid (685,184,435) (304,510,762)
Net cash used in financing activities (1,464,439,932) (664,533,026)
D. Net cash inflow for the year (A+B+C) 166,624,586 219,238,038
E. Cash and cash equivalents at the beginning of the year 450,611,442 231,373,404
F. Cash and cash equivalents at the end of the year (D+E) 617,236,028 450,611,442

RENATA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
1. Reporting entity
1.1 Company profile

Renata Limited (the “Company”) is a Public Limited Company incorporated in Bangladesh in 1972 as Pfizer Laboratories
(Bangladesh) Limited under the Companies Act 1913. The Company was listed with Dhaka Stock Exchange Limited on 12
May 1979. Subsequently, the Company was renamed as Renata Limited in 1993. The registered office of the Company is
situated at Plot # 1, Milk Vita Road, Section-7, Mirpur, Dhaka-1216.
1.2 Principal activities

The principal activities of the Company are manufacturing, marketing and distribution of pharmaceutical and animal health
products.
2. Basis of preparation of financial Statements
2.1 Reporting framework and compliance thereof

The financial statements have been prepared in compliance with the requirements of the Companies Act 1994, the Securities
and Exchange Rules 1987, the Listing Regulations of Dhaka Stock Exchange (DSE) and other relevant local laws as
applicable, and in accordance with the applicable Bangladesh Financial Reporting Standards (BFRSs) including Bangladesh
Accounting Standards (BASs) adopted by the Institute of Chartered Accountants of Bangladesh (ICAB) based on
International Financial Reporting Standards (IFRSs).
2.2 Measurement of elements in the financial statements

Measurement is the process of determining the monetary amounts at which the elements of the financial statements are to
be recognized and carried in the statement of financial position and profit or loss and other comprehensive income. The
measurement basis adopted by Renata Limited is historical cost except for few of the property, plant and equipment, financial
assets and inventories which are stated in accordance with the policies mentioned in the respective notes.
2.3 Functional and presentational currency and level of precision

The financial statements are prepared in Bangladesh Taka (BDT), which is the company's functional currency. All financial
information is presented in BDT and has been rounded off to the nearest BDT.
2.4 Use of estimates and judgment

The preparation of financial statements in conformity with Bangladesh Financial Reporting Standards requires management
to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts
of assets, liabilities, income and expenses, and disclosures requirements for contingent assets and liabilities during and at
the date of the financial statements.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions of accounting estimates are recognized in the period in which the estimate is revised and in any future periods
affected as required by BAS 8: Accounting Policies, Changes in Accounting Estimates and Errors.
In particular, significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the
most significant effect on the amounts recognized in the financial statements include depreciation, amortization, impairment,
net realizable value of inventories, accruals, taxation and provision.
2.5 Comparative Information and Rearrangement thereof

Comparative figures have been re-arranged wherever considered necessary to ensure better comparability with the current
period without causing any impact on the profit and value of assets and liabilities as reported in the financial statements.
2.6 Going Concern

When preparing financial statements, management makes an assessment of Renata Limited’s ability to continue as a going
concern. Renata Limited prepares financial statements on a going concern basis.
•55
2.7 Accrual Basis of Accounting
Renata Limited prepares its financial statements, except for cash flow information, using the accrual basis of accounting.
Since the accrual basis of accounting is used, Renata Limited recognizes items as assets, liabilities, equity, income and
expenses (the elements of financial statements) when they satisfy the definitions and recognition criteria for those elements
in the Framework.
2.8 Materiality and Aggregation

Renata Limited presents separately each material class of similar items. The Company presents separately items of a
dissimilar nature or function unless they are immaterial. Financial statements result from processing large numbers of
transactions or other events that are aggregated into classes according to their nature or function.
2.9 Offsetting
Renata Limited does not offset assets and liabilities or income and expenses, unless required or permitted by a BFRS.
2.10 Date of Authorization for Issue of the Financial Statements

On 21 October 2017 the Board of Directors reviewed the financial statements and authorized them for issue.
3. Summary of Significant accounting policies

Renata Limited selects and applies its accounting policies consistently for similar transactions, other events and conditions,
unless a BFRS specifically requires or permits categorization of items for which different policies may be appropriate. The
accounting policies set out below have been applied consistently in all material respects to all period presented in these
financial statements:
Changes in accounting policies

Renata Limited changes its accounting policy only if the change is required by a BFRS or results in the financial statements
providing reliable and more relevant information about the effects of transactions, other events or conditions on the
company’s financial position, financial performance or cash flows. Changes in accounting policies is to be made through
retrospective application by adjusting opening balance of each affected components of equity i.e. as if new policy has always
been applied.
Changes in accounting estimates

Estimates arise because of uncertainties inherent within them, judgment is required but this does not undermine reliability.
Effect of changes of accounting estimates is included in profit or loss account.
Correction of error in prior period financial statements

Renata Limited corrects material prior period errors retrospectively by restating the comparative amounts for the prior
period(s) presented in which the error occurred; or if the error occurred before the earliest prior period presented, restating
the opening balances of assets, liabilities and equity for the earliest prior period presented.
3.1 Property, plant and equipment (PPE)

Recognition and measurement
The cost of an item of property, plant and equipment is recognized as an asset if, and only if it is probable that future
economic benefits will flow to Renata Limited and the cost of the item can be measured reliably. An item of property, plant
and equipment that qualifies for recognition as an asset is measured at its cost.
Elements of Costs
• Purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates.
• Costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in
the manner intended by the management.
• The initial estimate of the cost of dismantling and removing the item and restoring the site on which it is located.
Subsequent Costs
• Costs of day to day servicing [repairs and maintenance] are recognized as expenditure as incurred.
• Replacement parts are capitalized, provided the original cost of the items they replace is derecognized.
Measurement of property, plant and equipment after recognition
Cost model
After recognition as an asset, an item of property, plant and equipment is carried at its cost less any accumulated
depreciation and any accumulated impairment losses.

Revaluation model
After recognition as an asset, an item of property, plant and equipment is to be measured at a revalued amount, which is its
fair value less subsequent accumulated depreciation and impairment accumulated losses.
Where an asset’s carrying amount is increased as a result of a revaluation, the increase is recognised in other
comprehensive income and accumulated in equity under the heading of revaluation surplus. However, the increase is
recognised in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in
profit or loss. Where an asset’s carrying amount is decreased as a result of a revaluation, the decrease is recognised in profit
or loss. However, the decrease is recognised in other comprehensive income to the extent of any credit balance existing in
the revaluation surplus in respect of that asset. The revaluation surplus included in equity in respect of an item of property,
plant and equipment is transferred directly to retained earnings as the asset is used by Renata Limited.
Depreciation
The depreciation charge for each period is recognised in profit or loss unless it is included in the carrying amount of another
asset. Depreciation of an asset begins when it is available for use, i.e. when it is in the location and condition necessary for
it to be capable of operating in the manner intended by management. The residual value and the useful life of an asset is
reviewed at least at each financial year-end and, if expectations differ from previous estimates, the change(s) shall be
accounted for as a change in an accounting estimate. Depreciation has been charged on straight-line method on all property,
plant and equipment that have already been put on operation except land. Full month's depreciation is charged from the
month the asset is put into use and no depreciation is charged for the month of disposal. Rates of depreciation considering
the useful lives of respective assets are as follows:
Depreciation rate (%)

Asset Type
30 June 2017 30 June 2016
Buildings 1.54-5 1.54-5
Plant and machinery 5-20 5-20
Automobiles 25 25
Office equipment 10-12.5 10-12.5
Furniture and fixtures 10 10
Derecognition of property, plant and equipment

The carrying amount of an item of property, plant and equipment is derecognised on disposal or when no future economic
benefits are expected from its use or disposal. The gain or loss arising from derecognition of an item of property, plant and
equipment is included as other income in profit or loss when the item is derecognised. When the revalued assets are
disposed off, the respective revaluation surplus is transferred to retained earnings.
3.2 Capital- work- in progress

Capital work in progress represents the cost incurred for acquisition and construction of items of property, plant and
equipment that were not ready for use at the end of 30 June 2017 and these were -stated at cost. In case of import
components, capital work in progress is recognised when risks and rewards associated with such assets are transferred to
the Group, i.e. at the time shipment is confirmed by the supplier.
3.3 Impairment of Assets

If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its
recoverable amount. That reduction is an impairment loss. An impairment loss on a non-revalued asset is recognised in profit
or loss. However, an impairment loss on a revalued asset is recognised in other comprehensive income to the extent that the
impairment loss does not exceed the amount in the revaluation surplus for that same asset. Such an impairment loss on a
revalued asset reduces the revaluation surplus for that asset.
Renata Limited assesses at the end of each reporting period whether there is any indication that an asset may be impaired.
If any such indication exists, Renata Limited estimates the recoverable amount of the asset.
3.4 Financial Instruments
3.4.1 Financial assets
Investment in shares
Investment in shares are classified as available for sale financial assets and initially measured at the fair value of the
consideration given (i.e. cost) plus (in most cases) transaction costs that are directly attributable to the acquisition of the
financial asset. Investments in shares are re-measured to fair value, without any deduction for transaction costs that may be
incurred on sale or other disposal. Gains and losses on re-measurement is recognised as follows:
• Impairment losses are recognised in profit or loss.
•57
• All other gains and losses are recognised in other comprehensive income and held in a separate component in equity.
On derecognition, either through sale or impairment, gains and losses previously recognised in other comprehensive
income is reclassified to profit or loss, becoming part of the gain or loss on derecognition.
Investment in subsidiaries
Separate Financial Statements are to enhance the relevance, reliability and comparability of the information that a parent
entity provides in its separate financial statements for a group of entities under its control. An entity must disclose the
information to enable users of the financial statements to evaluate the nature of the relationship between the entity and its
subsidiaries. Investment in subsidiaries is accounted for in Renata Limited’s separate financial statements at cost.
Trade Receivables
Trade receivables are recognized and stated at original invoiced amounts and carried at anticipated realizable values. Bad
debts are written off when it is established that they are irrecoverable. Specific allowance is made for known doubtful debts.
An estimate is made for doubtful debts based on a review of all outstanding amounts as at the financial position date.
Cash and cash equivalents

Cash and cash equivalents include cash in hand, balance and deposits with financial institutions that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of changes in value.
3.4.2 Financial liabilities
Borrowings
Borrowings are recorded at the amount of proceeds received. Borrowings are re-measured at amortised cost using the
effective interest method.
Trade payables
Trade payables are stated at cost which approximates the fair value of the consideration to be paid in the future for goods
and services received.
3.4.3 Impairment of financial assets

At each year end, Renata Limited assesses whether there is any objective evidence that a financial asset or group of assets
is impaired. Where there is objective evidence of impairment, Renata Limited determines the amount of any impairment loss.
3.5 Inventories
Measurement
Inventories are measured at the lower of cost and net realizable value except for goods in transit which are valued at cost.
Cost of inventories
The cost of inventories are comprised of all costs of purchase, costs of conversion and other costs incurred in bringing the
inventories to their present location and condition. Cost of active materials, raw materials and packing materials is assigned
by using the first-in, first-out (FIFO) cost formula. Cost of work-in-progress and finished stocks are determined by using FIFO
cost formula including allocation of manufacturing overheads related to bringing the inventories to their present condition.
The Company uses standard cost method for measurement of cost of finished goods.
Recognition as an expense
When inventories are sold, the carrying amount of those inventories is recognised as an expense in the period in which the
related revenue is recognised. The amount of any write-down of inventories to net realisable value and all losses of
inventories is recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any
write-down of inventories, arising from an increase in net realisable value, is recognised as a reduction in the amount of
inventories recognised as an expense in the period in which the reversal occurs.
3.6 Provisions, accruals and contingencies
Recognition
Provisions
A provision is recognised when Renata Limited has a present obligation (legal or constructive) as a result of a past event; it
is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and a reliable
estimate can be made of the amount of the obligation. If these conditions are not met, no provision is recognised.

Accruals
Accruals are liabilities to pay for goods or services that have been received or supplied but have not been paid, invoiced or
formally agreed with the supplier, including amount due to employees.
Contingent Liabilities
Renata Limited does not recognise a contingent liability. A contingent liability is disclosed, unless the possibility of an outflow
of resources embodying economic benefits is remote.
Contingent Asset
Renata Limited does not recognise a contingent asset. Contingent assets usually arise from unplanned or other unexpected
events that give rise to the possibility of an inflow of economic benefits to Renata Limited.
Measurement
The amount recognised as a provision is the best estimate of the expenditure required to settle the present obligation at the
end of the reporting period.
Changes and use of provisions

Provisions is reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer
probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is
reversed
3.7 Post-employment benefits
Defined contribution plan

The Company operates a recognized provident fund scheme where employees contribute 8.33% up to 5 years and over 5
years 10% of their basic salary with equal contribution by the Company. The provident fund is being considered as defined
contribution plan being managed by a Board of Trustees. Renata Limited recognises contributions payable as an expense in
the period in which the employee provides services. A liability is recognised where contributions arise in relation to an
employee's service, but remain unpaid at the period end.
Defined benefit plan

The Company had operated an unfunded gratuity plan till 29 December 2015 and thereafter, effective from 30 December
2015, the scheme has been converted to a funded one. Employees are entitled to get gratuity benefit after completion of
minimum seven years of service with the Company. The gratuity is calculated on the last drawn basic pay and is payable at
the rate of one month’s basic pay for every completed year of service while one and half months’ basic pay for more than ten
years of service. Actuarial valuation of the fund is carried out at 31 December 2016 by a professional actuary.
Group Insurance Scheme

The Company operates a group insurance scheme for its permanent employees.
Worker’s profit participation and welfare fund

The Company has created a workers’ profit participation and welfare fund in compliance with “The Bangladesh Labour Act,
2006” (as amended in 2013) and 5% of profit before charging such expenses is transferred to this fund.
3.8 Borrowing cost

Renata Limited capitalises borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset as part of the cost of that asset. Renata Limited recognises other borrowing costs as an expense in the period
in which it incurs them.
3.9 Reporting foreign currency transactions
Initial recognition
A foreign currency transaction is recorded, on initial recognition in the functional currency, by applying to the foreign currency
amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.
Subsequent measurement
A foreign currency transaction may give rise to assets or liabilities that are denominated in a foreign currency. These assets
and liabilities is translated into Renata Limited’s functional currency at each reporting date. Foreign currency monetary items
outstanding at the end of the reporting date are translated using the closing rate. The difference between this amount and the
previous carrying amount in functional currency is an exchange gain or loss. Exchange differences arising on the settlement
of monetary items or on translating monetary items at rates different from those at which they were translated on initial
recognition during the period or in previous financial statements is recognised in profit or loss in the period in which they arise.
•59
3.10 Revenue recognition
Revenue is recognized upon invoicing the customers for goods sold and delivered net off returns, allowances and trade
discounts. Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been
transferred to the buyer, the Company has no managerial involvement of ownership of the goods, the amount of revenue and
the cost of the transaction can be measured reliably and it is probable that the economic benefit associated with the
transactions will flow to the Company.
3.11 Taxation
The tax expense for the period comprises current tax and deferred tax. Tax is recognized in the income statement, except in
the case it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also
recognized in other comprehensive income or directly in equity.
Current tax
The current income tax charge is calculated based on tax laws enacted or substantively enacted at the balance sheet date.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation
is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.
Deferred tax
Principle of recognition
Deferred tax is recognised as income or an expense amount within the tax charge, and included in the net profit or loss for
the period. Deferred tax relating to items dealt with as other comprehensive income is recognised as tax relating to other
comprehensive income within the statement of profit or loss and other comprehensive income.
Deferred tax relating to items dealt with directly in equity (such as the correction of an error or retrospective application of a
change in accounting policy) is recognised directly in equity.
Taxable temporary difference

A deferred tax liability is recognised for all taxable differences, except to the extent that the deferred tax liability arises from
the initial recognition of goodwill; or the initial recognition of an asset or liability in a transaction which is not a business
combination; and at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).
Deductible temporary difference

A deferred tax asset is recognised for all deductible temporary differences to the extent that it is probable that taxable profit
will be available against which the deductible temporary difference can be utilised, unless the deferred tax asset arises from
the initial recognition of an asset or liability in a transaction that is not a business combination; and at the time of the
transaction, affects neither accounting profit nor taxable profit (tax loss).
Measurement
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is
realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the
3.12 Earnings per share [EPS]
Basic EPS
Renata Limited calculates basic earnings per share amounts for profit or loss attributable to ordinary equity holders of the
parent entity. Basic earnings per share is calculated by dividing profit or loss attributable to ordinary equity holders of the
parent entity (the numerator) by the weighted average number of ordinary shares outstanding (the denominator) during the
period.
Renata Limited presents basic earnings per share in the statement of profit or loss and other comprehensive income. The
company presents basic earnings per share with equal prominence for all periods presented. Renata Limited presents basic
earnings per share, even if the amounts are negative (i.e. a loss per share).
3.13 Statement of cash flows

Statement of cash flows has been prepared in accordance with the Bangladesh Accounting Standard BAS-7, 'Statement of
Cash Flows' under direct method. Cash comprises cash on hand and demand deposits. Cash equivalents are short-term,
highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk
of changes in value.

3.14 Operating segments
As there is a single business and geographic segment within which the Company operates, no segment reporting is felt
necessary.
3.15 Related party disclosures

Relationship between a parent and its subsidiaries is disclosed irrespective of whether there have been transactions between
them. Renata Limited discloses key management personnel compensation. The company discloses the nature of the related
party relationship as well as information about those transactions and outstanding balances, including commitments,
necessary for users to understand the potential effect of the relationship on the financial statements.
3.16 Events after the Reporting Period

Events after the reporting period are those events, favorable and unfavorable, that occur between the end of the reporting
period and the date when the financial statements are authorized for issue. Two types of events can be identified: adjusting
events: those that provide evidence of conditions that existed at the end of the reporting period and non adjusting events:
those that are indicative of conditions that arose after the reporting period.
3.17 Financial risk management

Renata Limited’s activities expose it to a variety of financial risks and those activities involve the analysis, evaluation,
acceptance and management of some degree of risk or combination of risks. Taking risk is core to the financial business, and
operational risks are an inevitable consequence of being in business. Renata Limited’s aim is therefore to achieve an
appropriate balance between risk and return and minimize potential adverse effects on Renata Limited’s financial
performance. Renata Limited’s risk management policies are designed to identify and analyze these risks, to set appropriate
risk limits and controls, and to monitor the risks and adherence to limits by means of reliable and up-to-date information
systems. Renata Limited regularly reviews its risk management policies and systems to reflect changes in markets, products
and emerging best practices.
Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The senior management of Renata Limited carefully manages its exposure to credit risk. Credit exposures
arise principally in receivables from customers into Renata Limited’s asset portfolio. The credit risk management and control
are controlled through the credit policies of Renata Limited which are updated regularly. The Company is also exposed to
other credit risks arising from balances with banks which are controlled through board approved counterparty limits.
Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable
price.
The Company's approach toward managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company's reputation. Typically, management ensures that it has sufficient cash and cash equivalents to
meet expected operational expenses, including the servicing of financial obligations through preparation of the cash forecast
prepared based on time line of payment of the financial obligations and accordingly arrange for sufficient liquidity/fund to
make the expected payments within due date.
Market risk
Renata Limited takes on exposure to market risks, which is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market prices. Market risks arise from open positions in interest rate and
currency, all of which are exposed to general and specific market movements and changes in the level of volatility of market
rates or prices such as interest rates, credit spreads and foreign exchange rates.
a) Currency risk
The Company is exposed to currency risk on certain receivables and payables such as receivables from foreign
customers and payables for import of raw materials, machinery and equipment. The majority of the Company’s foreign
currency transactions is denominated in US Dollar and relates to procurement of raw materials, machinery and
equipment from abroad.
b) Interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. Interest rate risk is the risk that the value of a financial instrument will fluctuate because of changes in
market interest rates. Renata Limited takes on exposure to the effects of fluctuations in the prevailing levels of market
interest rates on both its fair value and cash flow risks. Interest margins may increase as a result of such changes but
may reduce losses in the event that unexpected movements arise.
4. Director’s responsibilities statement

The Board of Directors of Renata Limited is responsible for the preparation and presentation of the financial statements.
•61
5. Property, plant and equipment Amount in Taka
COST/REVALUATION DEPRECIATION
Written down
Particulars Balance as at Addition Disposal/ Balance as at Balance as at Charge Disposal/ Balance as at value as at
Rate
1 July during adjustment 30 June 1 July for adjustment 30 June 30 June
2016 the year during the year 2017 % 2016 the year during the year 2017 2017
Freehold land:
At cost 1,022,616,322 47,229,820 - 1,069,846,142 - - - - 1,069,846,142
On revaluation 179,132,078 - - 179,132,078 - - - - 179,132,078
1,201,748,400 47,229,820 - 1,248,978,220 - - - - 1,248,978,220
Buildings
At cost 3,023,927,303 46,528,291 - 3,070,455,594 1.54-5 375,074,833 96,064,921 - 471,139,754 2,599,315,840
On revaluation 41,291,251 - - 41,291,251 1.54-5 12,740,731 635,885 - 13,376,616 27,914,635
3,065,218,554 46,528,291 - 3,111,746,845 387,815,564 96,700,806 - 484,516,370 2,627,230,475
Plant and machinery 6,604,168,552 572,775,332 6,400,000 7,170,543,884 5 - 20 1,860,910,174 443,890,443 6,142,946 2,298,657,671 4,871,886,213
Automobiles 285,374,539 93,519,161 28,408,555 350,485,145 25 171,815,029 48,549,346 28,408,555 191,955,820 158,529,325
Office equipment 287,412,636 64,498,199 - 351,910,835 10 - 12.5 141,798,409 30,139,979 - 171,938,388 179,972,447
Furnitures and fixtures 136,114,741 11,189,350 - 147,304,091 10 47,732,413 13,279,786 - 61,012,199 86,291,891
Total 30 June 2017 11,580,037,422 835,740,153 34,808,555 12,380,969,018 2,610,071,589 632,560,360 34,551,501 3,208,080,448 9,172,888,570
Total 30 June 2016 10,109,901,749 1,480,624,444 10,488,771 11,580,037,422 2,046,468,736 571,732,163 8,129,310 2,610,071,589 8,969,965,833
5.1 Initially recognised value of fully depreciated assets included in property, plant and equipment
is as follows: 30 June 2017 30 June 2016
Taka Taka
Building 4,448,824 4,448,824
Plant and machinery 246,082,508 203,373,296
Automobiles 110,932,000 125,025,555
Office equipment 64,157,714 57,812,931
Furniture and fixtures 10,215,781 7,777,777
435,836,827 398,438,383
5.2 The freehold lands of the Company measuring 204.214 acres are located at:
Mirpur, Dhaka 12.000 acres 12.000 acres
Pekua, Cox's Bazar 45.340 acres 45.340 acres
Barisal Sadar 0.290 acres 0.290 acres
Gondogram, Bogra 0.270 acres 0.270 acres
Lakshimipur, Rajshahi City Corporation 0.149 acres 0.149 acres
Dogri Rajendrapur, Gazipur 16.851 acres 16.763 acres
Kashor Gore, Bhaluka, Mymensingh 31.424 acres 30.232 acres
Sagordighi, Tangail 13.805 acres 13.805 acres
Siddikhali, Tangail 1.050 acres 1.050 acres
Ghatail, Tangail 13.234 acres 13.234 acres
Dhamsur, Bhaluka, Mymensingh 26.370 acres 26.370 acres
Turag, Dhaka 0.825 acres 0.660 acres
Sreepur, Gazipur 13.830 acres 13.830 acres
Keranigonj, Dhaka 0.590 acres 0.590 acres
Faridpur 0.410 acres 0.410 acres
Feni 0.365 acres 0.365 acres
Chatropur, Mymensingh 0.558 acres 0.558 acres
Phulbaria, Mymensingh 8.503 acres 8.503 acres
Mymensingh Depot 0.035 acres 0.035 acres
Sylhet Depot 0.483 acres 0.483 acres
Bogra Depot 0.645 acres 0.645 acres
Lohaboy, Bhaluka 4.463 acres 4.463 acres
Narangi, Bhaluka 6.605 acres 6.605 acres
Comilla Depot 0.580 acres 0.580 acres
Salna, Purabari 0.307 acres 0.307 acres
Sathkhamair, Sreepur 3.719 acres 3.719 acres
Dinajpur Depot 0.803 acres 0.803 acres
Rangpur Depot 0.710 acres - acres
Total 204.214 acres 202.059 acres
5.3 Depreciation for the year has been charged to: 2016-2017 2015-2016
Taka Taka
Cost of goods sold (Note-27.2) 545,496,734 504,777,677
Administrative, selling and distribution expenses (Note-28) 87,063,626 66,954,486
632,560,360 571,732,163
5.4 The freehold land and buildings were revalued by a firm of professional valuers in the year 1995 and the increase in net
carrying amount as a result of revaluation were shown as addition/valuation in that year.
5.5 Gain on disposal of property, plant and equipment

Amount in Taka
Original Accumulated Net book Sale Gain
cost depreciation value proceeds
2016-2017 2015-2016
34,808,555 34,551,501 257,054 14,395,005 14,137,951 3,575,000
6. Capital work in-progress 30 June 2017 30 June 2016

Taka Taka
Opening balance 702,996,708 1,056,556,375
Add : Addition during the year 888,522,356 793,740,908
1,591,519,064 1,850,297,283
Less: Capitalized as property, plant and equipment (Note-6.1) 519,314,492 1,147,300,575
1,072,204,572 702,996,708
This represents mainly construction of buildings for Bogra Depot, Rajendrapur Power Substation, Bhaluka Power
Substation, ERP project, installation of plant and machinery, their components and other fixed assets procured from foreign
and local vendors.
6.1 The break down of capitalized property, plant and equipment is as follows:
Freehold land - 10,377,868

Buildings 21,975,785 338,837,945
Plant and machinery 491,496,429 746,302,299
Automobiles 476,860 26,234,885
Office equipment 2,605,586 10,249,467
Furniture and fixtures 2,759,831 15,298,111
519,314,492 1,147,300,575
7. Investment in subsidiaries
No. of shares
Renata Agro Industries Limited (Note-7.1) 419,949 60,570,476 60,570,476

Purnava Limited (Note-7.2) 24,999 2,499,900 2,499,900
Renata Oncology Limited (Note-7.3) 7,999,900 79,999,000 79,999,000
8,444,848 143,069,376 143,069,376
•63
7.1 Investment in subsidiary company - Renata Agro Industries Limited
Renata Limited aquired 99.99% of equity interest in Renata Agro Industries Limited (419,949 ordinary shares of Taka 100
each) on 7 April 2001. Purchase consideration with regard to the acquisition of shares amounted to Taka 60,570,476.
Renata Limited and Renata Agro Industries Limited have been operating under common control.
7.2 Investment in subsidiary company - Purnava Limited

Renata Limited aquired 99.99% of equity interest in Purnava Limited (24,999 ordinary shares of Taka 100 each) on 16
September 2004. Purchase consideration with regard to the acquisition of shares amounted to Taka 2,499,900 being face
value of shares. Renata Limited and Purnava Limited have been operating under common control.
7.3 Investment in subsidiary company - Renata Oncology Limited

Renata Limited aquired 99.99% of equity interest in Renata Oncology Limited (7,999,900 ordinary shares of Taka 10 each)
on 12 August 2012. Purchase consideration with regard to the acquisition of shares amounted to Taka 79,999,000 being
face value of shares. Renata Limited and Renata Oncology Limited have been operating under common control.
8. Inventories
30 June 2017 30 June 2016
Taka Taka
Finished goods
- Pharmaceutical 424,026,166 485,097,557
- Animal health 438,425,059 420,866,583
- Contract manufacturing 57,732,598 25,026,371
- Potent product facility 41,433,943 47,913,328
- Cepha facility 135,781,373 122,809,355
- Penicillin facility 38,101,451 26,106,196
1,135,500,590 1,127,819,390
Work-in-process 182,801,854 172,750,725
Raw materials 453,575,178 459,324,651
Bulk materials 642,095,255 767,507,995
Packing materials 374,321,035 343,899,923
Consumable stores, spares and reagent materials 166,739,245 149,278,384
Stock in transit 412,991,688 431,542,273
3,368,024,846 3,452,123,341
Provision for obsolete inventories (138,801,953) (90,412,741)
3,229,222,893 3,361,710,600
9. Trade receivables
Trade receivables- unsecured (Note-9.1) 2,066,970,339 2,086,879,702

Allowances for doubtful receivables (71,211,922) (57,620,235)
1,995,758,417 2,029,259,467
9.1 Trade receivables disclosure as per Schedule-XI, Part-I, of the Companies Act, 1994
Receivables due below six months 1,933,105,837 1,944,586,148

Receivables due over six months 133,864,502 142,293,554
2,066,970,339 2,086,879,702
Trade receivables include Tk. 8,763,730 due from Renata Agro Industries Limited.

10. Other receivables 30 June 2017 30 June 2016
Taka Taka
Inter-company receivables
- Renata Agro Industries Limited 1,755,934 973,359
- Purnava Limited 168,494,331 143,409,462
- Renata Oncology Limited 336,299,307 326,273,629
Value Added Tax (VAT) recoverable 245,145,772 238,028,417
Others 41,422,258 51,790,091
793,117,602 760,474,958
11. Advances, deposits and prepayments
Advances
Loan to employees against motorcycle 90,035,499 54,153,664
Loan to employees against scooter 1,953,887 3,006,000
Loan to employees against salary 32,011,014 24,202,998
Advance for house rent 10,979,676 11,045,833
Advance VAT 64,710,809 51,272,903
Advance for inventory 7,698,930 11,232,212
Advance for field force 13,683,500 12,821,000
Advance to staff against expenses 20,132,234 16,324,863
Advance to staff against petty expenses 947,500 941,000
Advance against tour expenses 7,533,794 5,105,062
249,686,842 190,105,534
Deposits
Tender deposits 13,606,948 8,904,110
Security deposit to Linde Bangladesh Limited 880,000 784,000
Security deposit to G4S Security Services Bangladesh (P) Ltd. 946,650 946,650
Titas Gas Transmission and Distribution Co. Limited 455,811 455,811
Dhaka Electric Supply Co. Limited 2,310,000 2,310,000
Meghna Model Service Center 110,000 110,000
Mymensingh Palli Biddut Samity 12,256,000 11,872,000
Radison Water Garden Hotel 200,000 200,000
Gazipur Palli Bidyut Samity 10,248,000 10,248,000
Bangladesh Customs House, Dhaka Airport 200,000 200,000
Bangladesh Power Development Board, Sylhet 90,000 90,000
Bangladesh Power Development Board, Comiilla 40,000 40,000
Bangladesh Power Development Board, Bogra 232,534 -
Bangladesh Power Development Board, Faridpur 75,000 -
Bangladesh Petroleum Exploration & Production Co. Ltd. 7,000 7,000
Dhaka Medical College & Hospital 1,540 1,540
Miscellaneous deposits 260,500 260,500
41,919,983 36,429,611
Prepayments
Insurance premium 4,311,152 7,255,053
Miscellaneous 31,040 274,400
4,342,192 7,529,453
295,949,018 234,064,598
12. Investment in shares and others
Investment in shares (Note-12.1) 104,899,466 108,193,744

Investment in FDR 700,000,000 -
804,899,466 108,193,744
•65
Market value Cost
12.1 Investment in shares 30 June 2017 30 June 2016 30 June 2017
Taka Taka Taka
Square Pharma Limited 52,332,009 37,300,560 31,400,230
British American Tobacco Bangladesh Company Limited 9,195,225 8,775,000 1,964,918
BSRM Steels Limited 5,454,000 - 5,523,870
Confidence Cement Limited 6,730,000 - 6,995,370
AB Bank 1st Mutual Fund 3,500,000 - 3,564,200
Lafarge Surma Cement Limited 6,290,000 - 8,339,647
Southeast Bank Limited 5,550,000 - 6,825,050
LR Global Bangladesh Mutual Fund One 1,560,000 - 1,606,400
ACI Formulations Limited 3,001,500 - 3,242,427
Baraka Power Limited 4,370,000 - 4,371,393
The City Bank Limited 3,740,000 924,000 3,724,840
Central Depository Bangladesh Limited (unquoted) 1,569,450 1,569,450 1,569,450
Summit Power Limited 1,347,094 3,593,400 1,392,772
Islami Bank Bangladesh Limited 181,254 164,367 163,748
People's Leasing and Financial Services Limited 11,669 9,761 117,137
BRAC Bank Limited 48,420 26,500 13,905
International Leasing & Finance Services Limited 13,149 6,791 39,497
United Commercial Bank Limited 2,333 1,814 3,423
EXIM Bank Limited 2,172 1,424 1,494
Social Islami Bank Limited 1,193 689 596
AFC Agro Biotech Limited - 21,406,186 -
Khulna Power Company Limited - 12,980,000 -
Matin Spinning Mills Limited - 11,819,239 -
IDLC Finance Limited - 2,935,000 -
Unique Hotel & Resorts Limited - 2,802,000 -
Trust Bank Limited - 1,998,000 -
Pioneer Insurance Company Limited - 1,160,844 -
IFAD Autos Limited - 718,719 -
104,899,466 108,193,744 80,860,366
30 June 2017 30 June 2016

13. Cash and cash equivalents Taka Taka
Cash in hand 2,075,000 2,075,000
Cash at bank
Standard Chartered Bank 389,329,381 169,076,662
The Hongkong and Shanghai Banking Corporation Limited 43,255,127 82,792,393
Agrani Bank Limited 8,424,586 13,263,787
Sonali Bank Limited 23,881,690 20,163,582
Bank Asia Limited 45,332,847 127,463,443
Eastern Bank Limited 60,854,262 33,431,997
Commercial Bank of Ceylon PLC 26,115,893 -
Prime Bank Limited 1,345,191 1,392,628
United Commercial Bank Limited 957,219 909,075
The City Bank Limited 1,703,050 -
Citibank N. A. 1,732,817 -
One Bank Limited - 2,993
602,932,062 448,496,560
Balance with City Bank Capital Resources Limited 12,221,437 31,434

Balance with ICB Securities Trading Company Limited 7,529 8,449
12,228,966 39,882
617,236,028 450,611,442

30 June 2017 30 June 2016
14. Share capital
Taka Taka
Authorized share capital
100,000,000 ordinary shares of Tk.10 each 1,000,000,000 1,000,000,000
Issued, subscribed and paid up capital

1,294,260 ordinary shares of Tk.10 each issued for cash 12,942,600 12,942,600
1,724,490 ordinary shares of Tk.10 each issued for consideration other than cash 17,244,900 17,244,900
57,877,791 ordinary shares (49,934,764 ordinary shares as at 30 June 2016) of
Tk.10 each issued as bonus shares 578,777,910 499,347,640
608,965,410 529,535,140
These shares are listed with Dhaka Stock Exchange Limited and quoted at Tk 1,157.10 per share on 30 June 2017.
At 30 June 2017, the shareholding position of the Company was as follows:
Nationality/ Number of Face value % of total

Name of the shareholders Incorporated in shares Taka shareholdings
Sajida Foundation Bangladesh 31,056,973 310,569,730 51%

Business Research International Corp. Inc. Panama 13,265,768 132,657,680 22%
ICB Unit Fund Bangladesh 2,795,232 27,952,320 5%
Investment Corporation of Bangladesh Bangladesh 2,215,251 22,152,510 4%
Shadharan Bima Corporation Bangladesh 2,664,207 26,642,070 4%
Other shareholders Bangladesh & others 8,899,110 88,991,100 15%
60,896,541 608,965,410 100%
Classification of shareholders by holdings:
30 June 2017
No. of No. of
shareholders shareholders No. of total No. of % of total
Holdings as per folio as per BOID shareholders shareholdings shareholdings
Less than 500 shares 133 3,216 3,349 383,472 1%

501 to 5000 shares 48 745 793 1,282,404 2%
5,001 to 10,000 shares 10 72 82 583,498 1%
10,001 to 20,000 shares 19 46 65 940,446 2%
20,001 to 30,000 shares 2 21 23 574,730 1%
30,001 to 40,000 shares - 18 18 624,191 1%
40,001 to 50,000 shares - 10 10 456,844 1%
50,001 to 100,000 shares 2 17 19 1,243,828 2%
100,001 to 1,000,000 shares 1 14 15 3,741,820 6%
Over 1,000,000 shares 2 3 5 51,065,308 84%
217 4,162 4,379 60,896,541 100%
•67
30 June 2017 30 June 2016
15. Revaluation surplus Taka Taka
Land 179,132,078 179,132,078
Buildings 28,550,519 29,186,404
207,682,597 208,318,482
Less: Depreciation adjustment on revalued buildings (635,885) (635,885)
207,046,712 207,682,597
Less: Adjustment of deferred tax on revaluation surplus (51,761,678) (51,400,648)
155,285,034 156,281,949
The freehold land and buildings were revalued by a firm of professional valuer in the year 1995 and the resulting increase of
value of Tk. 220,423,329 has been shown as revaluation surplus.
16. Available for sale reserve
Opening balance 8,266,952 11,462,728

Unrealized gain/(loss) on quoted shares, net of tax 13,368,239 (3,195,776)
21,635,191 8,266,952
17. Retained earnings
Opening balance 9,848,993,073 7,334,105,821

Profit for the year 2,612,142,414 2,217,914,298
Addition of tax holiday reserve - (18,690,370)
Transfer of tax holiday reserve - 315,027,439
Stock dividend issued (79,430,270) -
Final dividend (450,104,869) -
Interim dividend (243,586,164)
Depreciation adjustment on revalued assets 635,885 635,885
11,688,650,069 9,848,993,073

30 June 2017 30 June 2016
18. Deferred tax liabilities Taka Taka
Opening balance 946,889,523 696,523,414
Addition during the year 190,438,045 250,366,109
1,137,327,569 946,889,523
Computation of deferred tax for the year ended 30 June 2017
Taxable/(deductible)
temporary Deferred tax
Carrying amount Tax base difference liabilities/ (assets)
Taka Taka Taka Taka
Property, plant and equipment excluding cost of land 8,103,042,428 3,490,217,047 4,612,825,381 1,153,206,345
Provision for doubtful debt and obsolete inventories (73,130,747) - (73,130,747) (18,282,687)
Investment in shares 104,899,466 80,860,366 24,039,100 2,403,911
Deferred tax liabilities/(assets) as at 30 June 2017 1,137,327,569
Deferred tax liabilities/(assets) as at 30 June 2016 946,889,523
Increase in deferred tax liabilites/(assets) during the year 190,438,045
Allocation of deferred tax liabilites/(assets) during the year

Charged to available for sale reserve (OCI) 2,403,911
Adjustment for reduction of revaluation surplus due to charges of extra depreciation (158,972)
Charged to profit or loss 188,193,106
190,438,045
Taxable/(deductible)
temporary Deferred tax
Carrying amount Tax base difference liabilities/ (assets)
Taka Taka Taka Taka
Property, plant and equipment excluding cost of land 7,662,272,555 3,724,762,661 3,937,509,894 984,377,474
Provision for doubtful debt and obsolete inventories (149,951,801) - (149,951,801) (37,487,950)

250,366,109
•69
19. Long term loan - net off current portion 30 June 2017 30 June 2016
Taka Taka
The Hongkong and Shanghai Banking Corporation Limited (Note-19.1) 257,110,932 406,895,993
257,110,932 406,895,993
Less: Current portion

161,200,000 156,800,003
95,910,932 250,095,990
19.1 The Hongkong and Shanghai Banking Corporation Limited
Details of facility:
Facility limit : USD 6,811,696.
Validity : Up to 18 November 2018.
Terms of repayment : Twenty equal quarterly installments commencing from February 2014.
Nature of security : i) Registered mortgage over 376.87 decimals industrial land in Rajendrapur where Cepha,
Penicillin, and Bottle sheed are situated.
ii) First Charge over all the present and future inventories, trade receivables, receivables claims,
contracts, bills, plant, machinery and equipment of Renata Limited.
20. Short term bank loan and overdraft

Short term bank loan
Eastern Bank Limited (Note-20.1) 112,396,964 27,434,391
The Hongkong and Shanghai Banking Corporation Limited (Note-20.2) - 2,505,543
The City Bank Limited (Note-20.3) 18,183,750 21,167,688
Standard Chartered Bank (Note-20.4) 529,563,134 1,363,613,386
Citibank N. A. (Note-20.5) 531,479,144 372,441,895
Bank Asia Limited (Note-20.6) 147,595,001 193,219,648
Commercial Bank of Ceylon PLC (Note-20.7) 335,301,831 190,177,282
1,674,519,824 2,170,559,835
Overdraft
The City Bank Limited (Note-20.3) - 3,384,373
Standard Chartered Bank (Note-20.4) - 31,911,165
Citibank N. A. (Note-20.5) - 64,099,901
Commercial Bank of Ceylon PLC (Note 20.7) 27,112,113 74,891,707
294,332,200 427,762,626
1,968,852,024 2,598,322,461

The terms and conditions of the facility available for Overdraft, Acceptance, LATR, Revolving, Import and Demand loan are
as follows:
20.1 Eastern Bank Limited
Overdraft
Purpose : To finance overhead cost and duty payment.
Facility limit : Tk. 100 million.
Repayment : Within 365 days from the date of disbursement.
Letter of credit/ Acceptance (Sight/ Usance)

Purpose : To import plant and machinery.
Facility limit : Combined Tk. 650 million.
Import finance
Purpose : To import raw materials.
Security
i) First charge over all present and future inventories and trade receivable of Renata Limited under pari-passu security
sharing agreement.
ii) First charge over all present and future plant and machinery of Renata Limited jointly as above.
iii) Registered hypothecation by way of pari passu with RJSC on entire inventory book debts and other floating assets and
plant and machinery of the Company in favor of Eastern Bank Limited.
Import loan (IMP01 and IMP02)

Purpose : To import raw materials, plant & machinery and spare on sight and deferred basis.
Facility limit : Combined Tk. 2,150 million.
Repayment : Within 180 / 360 days from the date of disbursement.
Import cash limit (IMC01 and IMC02)

Purpose : To release deferred documents against borrowers' acceptance.
Short term loan (LNL01)

Purpose : To finance VAT, duty, and regulatory payments.
Overdraft (O/D01)
Purpose : To meet overhead expense and to facilitate purchase of materials from local sources.
Repayment : On demand.
Security
sharing agreement.
•71
20.3 The City Bank Limited
Letter of credit/ Acceptance (Sight / Usance)
Purpose : To import API, excipient, packing materials and finished materials.
Import finance
Purpose : To retire sight Letter of credit documents opened for procurement API, excipient, packing materials
and finished materials.
Repayment : Within 180/150 days from the date of disbursement.
Short term loan

Purpose : For payment of duty and other charges related to import and VAT.
Overdraft
Purpose : To meet the day to day operating, promotional, and marketing expenses.
Security
sharing agreement.
ii) First charge over all present and future plant and machinery of Renata Limited with RJSC on pari passu security sharing
basis with the existing lenders.
20.4 Standard Chartered Bank

Letter of credit
Purpose : To open letter of credits for import of raw materials, packing materials, capital machinery, spares and
other items required for regular course of business.
Loan against Trust Receipt (LATR)

Purpose : Retirement of documents of only sight letter of credits.
Overdraft
Purpose : For working capital purposes.
Repayment : Overdraft to be cleaned up for 4 days in one year.
Acceptance
Purpose : To provide acceptance against letter of credits issued by the bank.
Security
sharing agreement.

20.5 Citibank N. A.
Purpose : To open letter of credits for import of raw materials, packing materials, capital machinery, spares and
other items required for regular course of business.
Facility limit : Combined USD 7,020,000.
Repayment : Within 180/ 360 days from the date of disbursement.
Import finance
Purpose : To refinance import letter of credits.
Short term loan

Purpose : To finance local purchase of active and raw materials, packing materials, capital machinery, spares
and other items required for regular course of business.
Overdraft
Purpose : To finance regular selling, general and administrative expenses.
Facility limit : Combined USD 980,000.
Cheque purchase/ Cash management line

Purpose : To facilitate the cash management funds of day 0 or day 1.
Security
sharing agreement.
20.6 Bank Asia Limited

Revolving letter of credit
Purpose : To import raw materials, machineries and spare parts for the Company.
Revolving LATR
Overdraft
Purpose : To payment of duty VAT, taxes and operating expenses.
Revolving demand loan

Purpose : For procurement of pharmaceuticals and packing materials from local sources.
Security
sharing agreement.
•73
20.7 Commercial Bank of Ceylon PLC
Facility limit : Tk. 1,500 million.

Security
sharing agreement.
30 June 2017 30 June 2016

21. Trade payables Taka Taka
Local purchase 162,013,856 243,302,278
Toll manufacturing charges (Sharif and NAFCO) 586,697 7,094,416
Payables for consumable-plant 17,470,000 30,856,092
180,070,553 281,252,786
22. Accruals
Leave incentive and encashment 244,044,877 226,950,313
Sales incentive 94,209,689 47,485,630
Performance bonus 20,840,398 21,815,170
Prescription bonus 43,140,032 48,138,312
Recreation allowance 958,484 4,026,114
Annual and festival bonus 174,854,238 101,381,910
Leave fare assistance 58,881 1,552,931
Interest expenses 38,553,507 15,493,926
Legal expenses 1,797,540 2,077,514
Professional expenses 650,000 606,250
Family day expenses 26,767,935 4,253,907
Field force expenses 35,395,404 35,470,799
681,270,985 509,252,776

23. Provisions and other liabilities 30 June 2017 30 June 2016
Provisions
Taka Taka
Meeting expenses 87,527,319 70,075,697
Final settlement of employees 297,791 -
87,825,110 70,075,697
Other liabilities
Workers' profit participation fund 148,849,823 202,126,474
Workers' welfare fund 77,179,188 31,181,844
VAT payable 107,030,084 107,030,084
Withholding Tax 3,461,934 6,361,979
Withholding VAT 34,121 -
Export commission payable 14,126,178 21,420,917
PF Trustee 876,035 2,853,977
Gratuity 196,675,041 16,244,056
Advance against sales 213,008 38,305,760
Royalty payable 12,636,465 10,395,776
Grant fund GAIN - 5,872,319
561,590,752 442,367,581
649,415,862 512,443,278
Unresolved VAT cases claimed by the VAT authority amounting to Tk. 107,030,084 for which appeals are pending with the
Hon'ble High Court Division of the Supreme Court and VAT Appellate Tribunal. However, a liability has been recognised in
the financial statements considering the probable unfavorable merit of the cases.
24. Unclaimed dividend
Unclaimed dividend upto 4 years 17,274,746 10,638,162

Unclaimed dividend above 4 years 9,310,592 6,120,578
26,585,338 16,758,740
25. Provision for taxation
Opening balance 945,454,055 751,425,471

Provision made during the year 891,379,438 734,412,361
1,836,833,493 1,485,837,832
Payment made during the year (1,087,656,518) (540,383,777)
749,176,975 945,454,055
•75
26. Turnover Amount in Taka
2016-2017 2015-2016
Gross Turnover Turnover

Turnover Less: VAT (net) (net)
Pharmaceutical products 13,223,690,250 1,939,974,695 11,283,715,555 10,381,931,803

Animal health products 3,443,564,541 268,378,703 3,175,185,838 2,899,391,936
Contract manufacturing 1,667,902,345 83,372,717 1,584,529,628 919,516,717
18,335,157,136 2,291,726,115 16,043,431,021 14,200,840,456
During the year, sale of pharmaceuticals products includes export sales of Tk. 990,112,975 equivalent to US$ 12,564,971.
2016-2017 2015-2016
27. Cost of goods sold Taka Taka
Raw materials consumed - (Note-27.1) 5,154,347,172 4,324,073,952
Factory overhead - (Note-27.2) 2,803,889,853 2,652,642,586
Manufacturing costs 7,958,237,025 6,976,716,538
Add: Opening work-in-process 172,750,725 216,386,268
8,130,987,750 7,193,102,806
Less: Closing work-in-process 182,801,854 172,750,725
Cost of goods manufactured 7,948,185,896 7,020,352,081
Add: Opening finished goods 1,127,819,390 812,051,575
Cost of finished goods - 262,394,158
Cost of goods available for sale 9,076,005,286 8,094,797,814
Less: Closing finished goods 1,135,500,590 1,127,819,390
7,940,504,696 6,966,978,424
27.1 Raw materials consumed
Opening stock 1,570,732,569 1,542,776,475

Add: Purchase during the year 5,053,606,071 4,352,030,046
Total materials available 6,624,338,640 5,894,806,521
Less: Closing stock 1,469,991,468 1,570,732,569
Raw materials consumed 5,154,347,172 4,324,073,952

27.2 Factory overhead 2016-2017 2015-2016
Taka Taka
Salaries, wages and other benefits 816,896,662 673,881,953
Electricity and fuel 607,260,342 570,914,360
Consumable stores and supplies 143,158,389 187,208,222
Insurance 10,416,364 6,105,311
Land revenue and taxes 8,487,721 4,325,928
Rent 2,309,723 5,533,234
Automobile expenses 18,764,723 17,906,607
Postage and telephone 11,153,230 13,017,434
Stationeries & Supplies 36,735,763 34,915,866
Uniform for workers 9,893,847 8,130,149
Travelling and moving expenses 45,373,481 35,099,832
Repair and maintenance 362,527,694 429,964,640
Lunch, snacks and tea expenses 130,793,621 120,836,016
Depreciation 545,496,734 504,777,678
Other overhead expenses 54,621,559 40,025,356
2,803,889,853 2,652,642,586
27.3 Purchases, issues and stocks of raw materials

Purchases, issues and stocks of raw materials are of over 3,000 items involving production of 840 finished goods
formulations. The measurement is expressed in different units i.e. kilogram, activity, liter, pieces. In view of different units in
use, the following table has been presented in value only.
Amount in Taka
Opening Closing
Major material group stocks Purchase Consumtion stocks
Bulk materials 767,507,995 2,469,883,662 2,595,296,402 642,095,255
Raw materials 459,324,651 1,054,093,044 1,059,842,517 453,575,178
Packaging materials 343,899,923 1,529,629,365 1,499,208,253 374,321,035
1,570,732,569 5,053,606,071 5,154,347,172 1,469,991,468
Consumable stores 7,902,507 37,460,723 39,727,512 5,635,718

Maintenance stores and spares 141,375,877 148,163,534 128,435,884 161,103,527
149,278,384 185,624,257 168,163,396 166,739,245
1,720,010,953 5,239,230,328 5,322,510,568 1,636,730,713
As per Part II of Schedule XI of the Companies Act, 1994 the quantities of raw materials, purchases and stocks should be
expressed in quantitative denomination. However, this could not be provided as the Company deals with large number of
products both locally made and imported.
Materials available in local market are procured from the local manufacturers. Materials are imported from the following
countries either directly from the manufacturers or suppliers approved by the Drug Administration:
India Japan Italy New Zealand

China Thailand Denmark Indonesia
Hong Kong South Korea Spain Argentina
Singapore United States of America (USA) Germany Brazil
Malaysia United Kingdom (UK) Austria Czech Republic
•77
28. Administrative, selling and distribution expenses 2016-2017 2015-2016
Taka Taka
Salaries, wages and allowances 1,625,542,171 1,354,715,787
Electricity and power 48,749,806 47,334,955
Rent, rates and taxes 40,447,762 28,933,059
Insurance 19,557,264 9,468,365
Travelling expenses 285,124,303 262,091,812
Repairs and maintenance 36,623,923 29,769,364
Legal and professional expenses 1,530,678 3,707,200
Provision for bad debts 15,048,578 6,742,128
Audit fees 768,750 575,000
Directors' fees 290,000 430,000
Membership fees & subscription 4,101,244 23,030,235
Meeting, annual sales conference and corporate expenses 81,204,833 49,516,373
Sales promotion 283,931,253 309,430,764
Field expenses 802,399,794 770,983,676
Depreciation 87,063,626 66,954,486
Stationery 32,738,518 43,804,111
Postage, telex, fax and telephone 52,832,106 31,866,363
Distribution freight 298,029,495 277,022,986
Lunch, snacks, tea and welfare expenses 177,863,708 149,854,571
4,063,427,289 3,613,885,944
29. Other Income

Scrap sales 2,789,276 3,152,035
Dividend income 2,254,835 4,059,354
Interest income 13,874,800 389,953
Gain from sale of quoted shares 2,902,706 2,287,853
Gain on disposal of property, plant and equipment (Note - 5.5) 14,137,951 3,575,000
35,959,568 13,464,195
30 Finance costs
Exchange loss 60,982,043 20,262,899
Bank charges 11,959,166 12,479,079
199,157,898 270,445,958
31 Basic earnings per share (EPS)

The computation of EPS is given below:
Earnings attributable to the ordinary shareholders (net profit after tax for the year) 2,612,142,414 2,217,914,298
Weighted average number of ordinary shares outstanding during the year (Note-31.1) 60,896,541 60,896,541
Basic earnings per share (EPS) 42.89 36.42
31.1 Weighted average number of share outstanding during the year

Opening number of shares 52,953,514
Bonus shares issued in November 2016 7,943,027
60,896,541
Last year's EPS has been adjusted as per the requirement of BAS-33 "Earnings Per Share".

32. Payments to directors and officers
The aggregate amount paid (except Directors' fees for attending board meetings) during the year to Directors and officers of the
Company is disclosed below as required by the Securities and Exchange Rules-1987:
Amount in Taka
Directors Officers
Remuneration 9,693,817 361,005,701

House rent 5,910,591 277,052,364
Bonus 4,039,091 156,918,445
Contribution to provident fund 969,382 36,439,159
Gratuity 1,211,727 224,165,567
Conveyance allowance and transport 2,956,420 181,224,111
Other welfare expenses 4,240,207 34,168,990
29,021,235 1,270,974,337
32.1 During the year, no payment has been made to any non-executive directors for any special services rendered.
33. Contingent liabilities
33.1 There are contingent liabilities on account of unresolved disputed corporate income tax assessments involving tax claims by
the tax authority amounting to Tk 8,381,193 for the assessment year 1998-99 to 2000-01; Taka 11,888,503 for the
assessment year 2013-14; Taka 14,478,424 for the assessment year 2014-2015 and Taka 21,059,586 for the assessment
year 2015-2016 for which appeals are pending with the Commissioner of Taxes (Appeal) and the Hon'ble High Court Division
of the Supreme Court.
33.2 The Assistant Commissioner of Taxes issued a notice vide letter No. SA-162/2014-2015/82 on 01 September 2014 claiming
that during the assessment year 2008-09 (income year 2007), the Company did not deduct VAT on certain accounting heads
amounting to Tk. 232,741,698 and tax file reopened accordingly under Section 93 of the Income Tax Ordinance, 1984. Total
tax amount was calculated Tk. 69,822,509 on that claimed amount by using the prevailing corporate tax rate 30%. However,
the Hon'ble High Court delivered the verdict in favour of the Company on 6 January 2016 but the National Board of Revenue
has made leave to appeal to the Supreme Court Appellate Division against the verdict.
33.3 The Value Added Tax Authority issued a notice vide letter No. 4/LTU-Mushak/Circle-5(29)Renata/631 on 28 January 2015
claimed that the Company did not pay VAT on Premix Products during 2009 to 2013 period and VAT claimed Taka
399,242,746 for the period. A writ petition to High Court was made against the mentioned claim and the High Court issued
stay order until disposal through its verdict.
34. Claims by the Company not acknowledged as receivable.
None as at 30 June 2017.
•79
35. Commitments
On the statement of financial position date, the Company is enjoying unfunded credit facilities from the following banks:
30 June 2017 30 June 2016

Taka Taka
Letters of credits (Note 35.1) 1,442,662,862 834,151,922
Outstanding guarantees issued by the banks 92,244,970 87,528,489
Capital expenditure commitments 454,872,572 23,230,746
1,989,780,404 944,911,157
30 June 2017 30 June 2016

35.1 Letters of credits
Limit Taka Taka
The Hongkong and Shanghai Banking Corporation Limited - - 94,272,298
Standard Chartered Bank 1,700,000,000 263,892,692 143,726,382
Eastern Bank Limited 550,000,000 102,241,542 37,376,422
The City Bank Limited 320,000,000 120,933,774 11,094,841
Citibank N.A. 403,000,000 462,614,116 58,483,995
Commercial Bank of Ceylon PLC 750,000,000 353,248,795 172,474,991
Bank Asia Limited 400,000,000 139,731,943 316,722,993
4,123,000,000 1,442,662,862 834,151,922
36, Dividend paid to non-resident shareholders
Dividend paid to non-resident shareholder, Business Research International Corp. Inc. for the year 2015-2016 was Tk. 78,296,472
equivalent to US$ 988,093 for their 11,514,187 shares, and interim dividend paid during the year 2017 was Tk.42,372,208
equivalent to US$ 526,101 for their 13,241,315 shares.
37. Disclosure as per requirement of Schedule XI, Part II of the Companies Act, 1994
37.1 Employee Position of Renata Limited as per requirement of schedule XI, part II, Para-3
The company engaged 6,087 (5,965 as of 30 June 2016) employees as of 30 June 2017, of which 4,150 (4,005 as of 30
June 2016) is permanent employees and 1,937 (1,960 as of 30 June 2016) is casual and temporary workers as required. All
employees received total salary of above Tk. 36,000 per annum.

37.2 Capacity utilization
Production capacity and current utilization as required by the Companies Act 1994, Schedule-XI, para-7. The Company
operates multi-products plants. As a result plant utilization is not comparable with capacity due to variation of product mix.
However, actual production and utilization for major products groups are as follows:
2016-2017 2015-2016
Actual Actual
Major product group/Unit Capacity production Utilization production Utilization
(In ’000) (In ’000) % (In ‘000) %
Sterile dry fill (injectable) / Vials 6,500 6,293 96.82% 6,097 93.80%
Sterile liquid (inj) / Vials / ampoule 11,635 14,232 122.32% 12,235 116.52%
Ointments / Tubes 1,500 710 47.33% 506 33.70%
Capsules and tablets / Cap / Tab 1,450,000 1,810,075 124.83% 1,470,652 122.55%
Oral liquid & dry syrup / Bottles 15,375 21,927 142.61% 19,797 137.48%
Water for injection / Ampoules 6,000 6,395 106.58% 5,203 86.71%
Premix feed supplement / Kg 4,850 6,096 125.69% 6,143 136.51%
Premix feed suppl. / Sachets 3,350 5,234 156.24% 4,277 142.55%
ORAL saline / Sachets 355,000 440,579 124.11% 242,038 96.82%
Potent Products / Tablets 2,455,000 2,893,065 117.84% 2,676,673 133.83%
38. Payments / receipts in foreign currency
38.1 During the year, the following payments were made in foreign currency for imports, calculated
on CIF basis of:
Foreign Local
currency currency
USD Taka
Active, raw and packaging materials 53,110,982 4,195,767,584

Machinery and spares 10,282,841 812,344,472
63,393,823 5,008,112,056
38.2 The following expenses were incurred during the year in foreign currency on account of:
Professional consultation fee USD 293,168

Export promotional expenses USD 553,278
Product development and others USD 387,369
Product registration USD 99,415
38.3 Foreign exchange was earned in respect of the following:
Export of goods on FOB USD 12,564,971
•81
39. Related party disclosures
During the year the Company carried out a number of transactions with related parties in the normal course of business on
an arm's length basis. Name of those related parties, nature of those transaction and their total value has been shown in the
table below in accordance with BAS-24 "Related Party Disclosures".
Transaction-2016-2017
Opening Closing
Name of the party Relationship Nature of transactions balance Addition Adjustment balance
Taka Taka Taka Taka
Renata Agro Subsidiary Sale of goods 9,977,575 22,360,030 23,573,875 8,763,730

Industries Limited Advance payment 973,359 8,539,277 7,756,702 1,755,934
10,950,934 30,899,307 31,330,577 10,519,664
Purnava Limited Subsidiary Sale of goods - 59,784,463 59,784,463 -

Advance payment 143,409,462 146,088,091 121,003,222 168,494,331
143,409,462 205,872,554 180,787,685 168,494,331
Renata Oncology Limited Subsidiary Purchase of goods - 32,391,586 32,391,586 -

Advance payment 326,273,629 84,985,349 74,959,671 336,299,307
326,273,629 117,376,935 107,351,257 336,299,307
40. General
1) All the figures in the financial statements represent Bangladesh Taka currency rounded off to the nearest Taka.
2) The comparative information have been disclosed in respect of the year 2016-2017 for all numerical information in the
financial statements and also the narrative and descriptive information as found relevant for understanding of the current
year's financial statements.
41 Events after the reporting period
The Board of Directors in their meeting held on 21 October 2017 have recommended total cash dividend @ 130% per share
of Taka 10 each (including interim dividend @ 40% per share of Taka 10 each aggregating Taka 243,586,164) aggregating
Taka 791,655,033 and stock dividend @ 15% of Taka 10 each aggregating Taka 91,344,812 for the year ended 30 June
2017 subject to approval of the shareholders in the Annual General Meeting scheduled to be held on 09 December 2017.
The financial statements for the year ended 30 June 2017 only includes the effect of the interim cash dividend, which has
already been paid, and do not include the effects of the final cash dividend and stock dividend which will be accounted for in
the period when shareholders' right to receive the payment will be established.
There are no other material events identified after the statement of financial position date which require adjustment or
disclosure in these financial statements.

Report and Financial Statements as at and for the year ended 30 June 2017
Board of Directors
• Mr. Kaiser Kabir, Chairman
• Mr. Khalil Musaddeq, Director
• Mr. Manzoor Hasan, Independent Director
•83
In the financial year starting July, 2016 and ending by overproduction in the succeeding year which is
June 30, 2017 two additional sheds were built likely to result in low unit prices for DOCs. The
bringing total number of sheds to 17 for breeder and specialized table egg segment is showing a
commercial egg production. Renata Agro’s breeder consistent upward trend in sales and profitability. It
farms achieved 97% of its production target for the would be advisable to continue to focus on this
year. This was the result of strict bio-security segment of our business. Commercial broiler
protocols and efficient farm management practices. production may be expanded gradually but cautiously
During this time, there were no serious outbreaks of with an eye for the future. However, it is advisable at
contagious diseases in our farms. Approximately 8.3 the moment to refrain from undertaking large scale
million pieces of DOCs were hatched in our hatchery. production of commercial feed due to inherent risks
of this business.
Renata Agro had initiated a process of diversification
of its business. Production of Omega - 3 eggs was On behalf of the Board of Directors
initiated in 2010. Commercial production of Vitamin -
E eggs was started on November 2014. Toll
production of commercial feed was initiated on a pilot
basis in 2015-2016. However, production of
commercial feed will be discontinued in the future.
This is because toll production made it difficult to
control quality and to ensure timely production and Kaiser Kabir
distribution of feed. Additionally, a significant share of Chairman
feed sales is on risky credit, the collection of which is 23 September 2017
uncertain.
The DOC segment has been significantly profitable

this year. However, the boom period may be followed

AUDITOR'S REPORT
TO THE SHAREHOLDERS OF
RENATA AGRO INDUSTRIES LIMITED
We have audited the accompanying financial statements of We believe that the audit evidence we
RENATA AGRO INDUSTRIES LIMITED, which comprise have obtained is sufficient and
the statement of financial position as at 30 June 2017 and appropriate to provide a basis for our
the statement of profit or loss and other comprehensive audit opinion.
income, statement of changes in equity and statement of
cash flows for the year then ended, and a summary of Opinion
significant accounting policies and other explanatory In our opinion, the financial statements,
information. prepared in accordance with Bangladesh
Financial Reporting Standards (BFRSs),
Management's Responsibility for the Financial give a true and fair view of the financial
Statements Management is responsible for the preparation position as at 30 June 2017 and its
and fair presentation of these financial statements in financial performance and cash flows for
accordance with Bangladesh Financial Reporting the year then ended and comply with the
Standards (BFRSs), and for such internal control as Companies Act, 1994 and other
management determines is necessary to enable the applicable laws and regulations.
preparation of financial statements that are free from
material misstatement, whether due to fraud or error. We also report that:
(a) we have obtained all the information and
explanations which to the best of our
Auditor's Responsibility knowledge and belief were necessary
Our responsibility is to express an opinion on these for the purposes of our audit and made
due verification thereof.
financial statements based on our audit. We conducted our
audit in accordance with Bangladesh Standards on Auditing
(b) in our opinion, proper books of account
(BSAs). Those standards require that we comply with as required by law have been kept by
ethical requirements and plan and perform the audit to the company so far as it appeared from
obtain reasonable assurance about whether the financial our examination of those books; and
statements are free from material misstatement
An audit involves performing procedures to obtain audit (c) the company's statement of financial
evidence about the amounts and disclosures in the position and statement of profit or loss
financial statements. The procedures selected depend on and other comprehensive income dealt
our judgment, including the assessment of the risks of with by the report are in agreement with
material misstatement of the financial statements, whether the books of account.
due to fraud or error. In making those risk assessments, we
consider internal control relevant to the entity's preparation
and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an K.M. HASAN & CO.
opinion on the effectiveness of the entity's internal control. Chartered Accountants
An audit also includes evaluating the appropriateness of
Place: Dhaka
accounting policies used and the reasonableness of Dated: 23 September 2017
accounting estimates made by management, as well as
evaluating the overall presentation of the financial
statements.
•85
Renata Agro Industries Limited
AS AT 30 JUNE 2017
Amount in Taka
ASSETS Notes 30 June 2017 30 June 2016

Non-current assets
Property, plant and equipment's 5 432,655,585 387,168,576
Capital work-in-progress 6 422,679 14,925,127
Investments 7 141,565,199 66,675,125
574,643,463 468,768,828
Current assets
Inventories 8 87,401,789 88,622,455
Trade and other receivables 9 20,166,393 38,580,382
Advances, deposits and prepayments 10 20,235,516 15,370,091
151,828,221 152,534,540
Total assets 726,471,684 621,303,368

Equity and reserve
Share capital 12 42,000,000 42,000,000
Tax holiday reserve 46,643,337 46,643,337
Reserve for unrealized gain-share 28,227,478 23,373,791
Retained earnings 518,022,859 378,598,516
634,893,674 490,615,644
Non- current liabilities

Deferred tax liability 13 9,564,438 12,072,342
Provision for gratuity 14 778,569 19,728,569
10,343,007 31,800,911
Current liabilities
Bank overdraft 15 - 10,694,969

Trade and other payables 16 26,740,345 30,123,605
Cost accrual 17 13,860,283 11,034,100
Provision and other liabilities 18 31,739,979 34,419,607
Provision for income tax 19 8,894,396 12,614,532
81,235,003 98,886,813
Total equity and liabilities 726,471,684 621,303,368
Annexed notes form an integral part of these financial statements
Director General Manager Chairman
Signed in terms of our report of even date annexed.
Place: Dhaka K.M. HASAN & CO.

Dated: 23 September 2017 Chartered Accountants

STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
Amount in Taka
Notes 2016-2017 2015-2016
Revenue 20 556,149,436 565,180,379

Cost of sales 21 (360,896,418) (394,633,458)
GROSS PROFIT 195,253,018 170,546,921
Administrative expenses 22 (16,469,202) (14,155,805)

Marketing expenses 23 (13,211,764) (9,204,642)
Distribution expenses 24 (15,841,117) (15,686,448)
(45,522,083) (39,046,895)
OPERATING PROFIT/(LOSS) 149,730,935 131,500,026
Finance income 25 8,402,908 2,417,499

Finance expenses 26 (2,057,116) (8,200,020)
6,345,792 (5,782,521)
Profit before contribution to BPPF 156,076,727 125,717,505
Contribution to BPPF (7,432,225) (5,986,547)
Profit/(loss) before income tax 148,644,502 119,730,958
Provision for tax:
Deferred tax 13 5,644,291 (12,072,342)
Current tax 19 (14,864,450) (17,700,961)
(9,220,159) (29,773,303)
Net profit after income tax 139,424,343 89,957,655

Unrealized gain/(loss) on marketable securities 4,853,687 4,739,713
Total comprehensive income 144,278,030 94,697,368
Basic Earnings Per Share (EPS) 27 331.96 214.18

•87
Amount in Taka
Reserve for
Tax Holiday unrealised Retained Total
Particulars Share Capital reserve gain-share Earnings Equity
Balance as at 01 July 2016 42,000,000 46,643,337 23,373,791 2 378,598,516 490,615,644

Net Profit for the year ended 30 June 2017 - - - 139,424,343 139,424,343
Unrealized gain during the year - - 4,853,687 - 4,853,687
BALANCE AS AT 30 JUNE 2017 42,000,000 46,643,337 28,227,478 518,022,859 634,893,674
For the year ended 30 June 2016
Reserve for
Tax Holiday unrealised Retained Total
Particulars Share Capital reserve gain-share Earnings Equity
Balance as at 30 June 2015 42,000,000 46,643,337 18,634,078 288,640,861 395,918,276

Net Profit for the year ended 30 June 2016 - - - 89,957,655 89,957,655
Unrealized gain during the year - - 4,739,713 - 4,739,713
BALANCE AS AT 30 JUNE 2016 42,000,000 46,643,337 23,373,791 378,598,516 490,615,644


Amount in Taka
A. CASH FLOWS FROM OPERATING ACTIVITIES

2016-2017 2015-2016
Collection from customers and others 582,966,334 561,089,631
Payment to suppliers and employees (338,030,801) (326,685,849)
Cash paid for operating expenses and others (72,623,178) (190,406,048)
Cash generated from operation 172,312,355 43,997,734
Income tax paid (22,584,587) (7,292,463)
Financial expenses (2,057,116) (8,200,020)
Net cash inflows from operating activities 147,670,652 28,505,251
B. CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment's (62,078,730) 4,194,534
Proceed from sale of property, plant and equipment's 6,065,958 -
Capital work- in- progress - (39,402,930)
Investment in FDR (80,000,000) -
Investment 13,100,000 (11,144,720)
Net cash used in investing activities (122,912,772) (46,353,116)
C. CASH FLOWS FROM FINANCING ACTIVITIES

Bank overdraft received/paid (10,694,969) 10,694,969
Net cash (used in)/inflows from financing activities (10,694,969) 10,694,969
Net cash and cash equivalents inflows/(outflows) for the year (A+B+C) 14,062,911 (7,152,895)
Add: Opening cash and cash equivalents 9,961,612 17,114,507
Closing cash and cash equivalents 24,024,523 9,961,612

•89
AS AT AND FOR THE YEAR ENDED 30 JUNE 2017
1. STRUCTURE OF THE COMPANY
1.1 Renata Agro Industries Limited is a private company limited by shares incorporated on 07 September 1997 in Bangladesh
under the Companies Act, 1994 The shares of the company shall be under the control of the Directors of the company.
1.2 Registered Office and Principal Place of Business

The registered office of the Company is situated at Plot No. 01, Section - 07, Milk Vita Road, Mirpur, Dhaka-1216. The farm is
located at Barakashar, Bhaluka, Mymensingh.
2. NATURE OF BUSINESS ACTIVITIES

The principal activities of the company are to carry out business for production and sale of various agro based
products and poultry breeding & hatching and sale of poultry products. The company commenced its commercial operation
from October 1998.
3. PRINCIPAL ACCOUNTING POLICIES
3.1 Basis of Accounting

The financial statements have been prepared under historical cost convention in accordance with Bangladesh Financial
Reporting Standards (BFRSs).
3.2 Compliance with Local Laws

The financial statements have been prepared in compliance with the Companies Act, 1994 and other relevant local laws and rules.
3.3 Component of the Financial Statements

According to the Bangladesh Accounting Standards "BAS-1", "Presentation of Financial Statements" to complete set of
Financial Statements include the following components:
(a) Statement of Financial Position as at 30 June 2017.
(b) Statement of Profit or Loss and other Comprehensive Income for the year ended 30 June 2017.
(c) Statement of Changes in Equity for the year ended 30 June 2017.
(d) Statement of Cash Flows for the year ended 30 June 2017.
(e) Notes to the Financial Statements for the year ended 30 June 2017.
3.4 Risk and uncertainties for use of estimates in preparation of Financial Statements
The preparation of financial statements in conformity with the Bangladesh Accounting Standards (BASs) require management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of financial statements, and revenues and expenses during the year. Actual results could
differ from those estimates. Estimates are used for accounting of certain items such as provision for doubtful accounts,
depreciation, taxes, reserves and contingencies.

3.5 Transactions with related parties
The Company has carried out following transactions with related parties in the normal course of business.
Balance as at
Name of related Addition Adjustment Balance as at
Relationship Nature 01 July
party during the year during the year 30 June 2017
2016
Subsidiary of
Renata Limited Sale 3,956,224 31,675,828 32,984,515 2,647,537
parent
Renata Limited Parent Purchase 9,977,575 22,360,030 23,573,875 8,763,730
Land
Renata Limited Parent purchase 973,359 8,539,277 7,756,702 1,755,934
purpose
3.6 Reporting Period

Financial statements of the Company cover the year from 01 July 2016 to 30 June 2017.
3.7 Property, Plant & Equipment

Property, Plant & Equipment's are stated at cost less accumulated depreciation in accordance with BAS 16 "Property, Plant
and Equipment." Cost represents cost of acquisition.
No depreciation is charged on land and land development. Depreciation on all other fixed assets is charged on straight line
method in amount sufficient to write off depreciable assets over their estimated useful life. Depreciation is charged for the full
year on assets acquisitioned during the year. The rates of depreciation are indicated in Note-5.
Depreciation has been allocated on farm overhead expenses, vitamin - E eggs expenses, omega-03 Project, administrative
expenses, distribution expenses, hatchery expenses, feed expenses and laboratory expenses proportionately. The allocation
of depreciation is indicated in Note-5.
3.8 Inventories
Inventories comprise of parent stock -broiler, parent stock- vitamin E, parent stock- layer, feed stock, medicine, feed mill
ingredient, litter, generator fuel, LP gas, layer eggs-03, omega-03 feed, commercial feed, commercial broiler feed and
vitamin-E eggs . All these are stated at cost and considered as realizable value. No due allowance for any obsolete or slow
moving items have been accounted for.
3.9 Trade and other Receivables

These are carried at original invoice amount. This is considered good and collectible.
3.10 Cash and Cash Equivalents

According to BAS-7 " Statement of Cash Flows ", Cash comprises cash in hand and demand deposits and cash equivalents
are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value. BAS-1 "Presentation of Financial Statements" provides that Cash and Cash Equivalents
are not restricted in use. Considering the provisions of BAS-I & BAS-7, cash in hand and bank balance have been considered
as cash and cash equivalents.
3.11 Statement of Cash Flows

Statement of Cash Flows is prepared principally in accordance with BAS-7 "Statement of Cash Flows" and the cash flow from
operating activities has been presented under direct method.
3.12 Trade and other Payables

Liabilities are recognized for amounts to be paid in future for goods and services received, whether or not billed by the
suppliers and service provider.
•91
3.13 Revenue from Sales
Sales comprise the invoice value of goods supplied by the company and consists of local sales of products.
3.14 Revenue Recognition

The revenues are recognized under satisfying all the conditions for revenue recognition as provided in BAS-18 "Revenue
Recognition".
(i) Sales are recognized at the time of delivery of products from the farm whether billed or not.
(ii) Other sales are recognized at the time of delivery from the farm.
3.15 Earnings Per Share (EPS)

The company has calculated Earnings Per Share (EPS) in accordance with BAS-33 "Earnings Per Share".
3.16 Current tax

Current tax expense has been made on the basis of the Finance Act, 2016 and the Income Tax Ordinance, 1984.
3.17 Deferred tax

Deferred tax is recognized using the balance sheet method. Deferred tax arises due to temporary difference deductible or
taxable for the events or transactions recognized in the statement of profit or loss and other comprehensive income. A
temporary difference is the difference between the carrying amounts of assets and liabilities and its tax base amount in the
statement of financial position. Deferred tax asset or liability is the amount of income tax recoverable or payable in future
period(s) recognized in the current period. The deferred tax asset / income or liability / expense do not create a legal liability /
recoverability to and from the income tax authority. Deferred tax also arises due to revaluation of property, plant and
equipment. The resulting impact of deferred tax assets / liabilities on revaluation surplus is included in the statement of
changes in equity.
3.18 Defined contribution plan

The Company operates a recognized provident fund scheme where employees contribute 10% of their basic salary with equal
contribution by the Company. The provident fund is being considered as defined contribution plan being managed by a Board
of Trustees.
3.19 Investment in shares

Quoted shares are classified as available for sale financial assets and recognized initially at cost. After initial recognition,
investments are measured at fair value and any changes in the fair value are recognized in the statement of profit or loss and
other comprehensive income under the component of other comprehensive income for the period in which it arises.
4. GENERAL
4.1 Figures have been rounded off to the nearest Taka.
4.2 Previous year's figures have been re-arranged / re-grouped and / or re-stated where necessary to conform to the current
year's financial presentation.

Amount in Taka
5. PROPERTY, PLANT AND EQUIPMENTS
COST DEPRECIATION
Balance Addition Adjustment/ Balance Balance Charged Adjustment/ Balance Written

Particulars as on during Disposal as at Rate (%) as at during Disposal as at Down Value
01.01.17 the year during 30.06.17 01.01.16 the year during 30.6.17 as on
the year the year 30.6.17
Freehold land and land development 108,525,140 8,156,705 - 116,681,845 - - - - - 116,681,845

Building on freehold land 248,747,371 24,842,025 - 273,589,396 5.0% 89,689,361 13,121,637 - 102,810,998 170,778,398
Semi pucca building on freehold land 1,741,817 - - 1,741,817 12.5% 1,741,817 - - 1,741,817 -
Plant & machinery 207,934,009 21,617,459 - 229,551,468 5.0% 101,247,798 10,790,896 - 112,038,694 117,512,774
Office equipments 9,666,561 1,302,645 - 10,969,206 12.5% 6,099,252 1,272,846 - 7,372,098 3,597,108
Automobiles and trucks 28,057,572 20,624,509 6,065,958 42,616,123 20.0% 19,917,893 4,718,033 5,027,746 19,608,180 23,007,943
Furniture & fixture 3,044,100 37,835 - 3,081,935 5.0% 1,851,873 152,545 - 2,004,418 1,077,517
Balance as at 30 June 2017 607,716,570 76,581,178 6,065,958 678,231,790 220,547,994 30,055,957 5,027,746 245,576,205 432,655,585
Balance as at 30 June 2016 587,433,301 20,283,269 - 607,716,570 194,889,410 25,658,584 - 220,547,994 387,168,576
Amount in Taka
Allocation of depreciation
30 June 2017 30 June 2016
Farm overhead 21,305,710 18,948,613
Vitamin - E eggs expenses 407,791 784,623
Omega-03 Project 1,033,137 877,216
Administrative expenses 2,048,737 457,444
Distribution expenses 1,103,737 936,855
Hatchery expenses 2,862,746 2,808,019
Feed mill 550,574 529,587
Marketing expenses 427,296 -
Laboratory expenses 316,229 316,227
30,055,957 25,658,584
Amount in Taka
6. CAPITAL WORK- IN-PROGRESS 30 June 2017 30 June 2016

Opening balance 14,925,127 -
68,852,654 32,559,809
Capitalized as property, plant and equipment's (68,429,975) (17,634,682)
Closing balance 422,679 14,925,127
7. INVESTMENTS
Investment in share (Note-7.1) 49,770,479 41,780,405
Investment in Govt. savings certificates (Note-7.2) 650,000 13,750,000
Investment in Govt. bond ( 5 Years) (Note-7.3) 11,144,720 11,144,720
141,565,199 66,675,125
7.1 Investment in share
The following amounts are invested in listed companies for maintaining equivalent amount of Tax holiday reserve @ 10%
being exempted on net profit of Renata Agro Industries Limited.
30 June 2017 30 June 2016
Name of company Number of share Cost price of share Book Value Fair Value of Share Fair Value of Share
United Finance Ltd. 36,621 578,923 21.4 783,689 610,365
Bata shoe Ltd. 2,000 264,501 1,131.3 2,262,600 2,410,800
Square pharma Ltd. 157,117 13,896,710 290.1 45,579,642 37,969,562
UCBL 18,938 2,600,218 21.6 409,061 318,158
ICB 4,210 1,066,263 174.7 735,487 471,520
218,886 18,406,615 49,770,479 41,780,405
•93
7.2 Investment in Govt. savings certificates ( 5 Years ) Amount in Taka
Name of Certificate Certificate No Maturity Date 30 June 2017 30 June 2016

Purchase Date: 27.06.2011
BSP 163/11 0757543 27/6/2016 100,000 100,000
BSP 163/11 0059444 27/6/2016 500,000 500,000
BSP 163/11 0059445 27/6/2016 500,000 500,000
BSP 163/11 0059446 27/6/2016 500,000 500,000
BSP 163/11 0059447 27/6/2016 500,000 500,000
BSP 163/11 0047938 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047939 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047940 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047941 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047942 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047943 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047944 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047945 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047946 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047947 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047948 27/6/2016 1,000,000 1,000,000

BSP 2014/0714 0085345 09/08/2019 500,000 500,000
BSP 2014/0714 0857627 09/08/2019 100,000 100,000
BSP 2014/0714 1434173 09/08/2019 50,000 50,000
13,750,000 13,750,000
Encashed during this year (13,100,000) -
650,000 13,750,000
7.3 Investment in Govt. bond ( 5 Years)

BD0920011055 (Maturity date: 16.07.2020) 11,144,720 11,144,720
8. INVENTORIES
Parent stock- Broiler 55,886,240 64,825,702
Parent stock- Vitamin E 3,772,418 -
Parent stock- Layer 9,025,869 -
Feed stock 197,755 728,406
Medicine 6,494,877 2,907,932
Feed mill Ingredient 9,435,516 16,876,425
Litter 579,184 102,000
Generator fuel & LP gas 579,396 1,116,369
Layer eggs-03 692,220 376,780
Omega-03 Feed 43,430 281,045
Vitamin-E Feed 182,908 -
Commercial Feed - 1,259,076
Vitamin-E Eggs 511,976 148,720
87,401,789 88,622,455
9. TRADE AND OTHER RECEIVABLES

Trade receivables (Note- 9.1) 11,721,867 9,400,387
Other receivables (Note - 9.2) 8,444,526 29,179,995
20,166,393 38,580,382
9.1 Aging of trade receivables
Receivables due below six months 7,033,120 5,640,232
11,721,867 9,400,387
9.2 Other receivables
Vitamin-E eggs 765,397 1,195,229
Omega-03 eggs 1,822,756 2,916,921
Hatching Eggs 238,232 -
Commercial feed 2,844,506 18,528,145
Savings certificate interest - 6,539,700
Loan to employee 2,773,635 -
8,444,526 29,179,995

Amount in Taka
10. ADVANCES, DEPOSITS AND PREPAYMENTS 30 June 2017 30 June 2016

Advances (Note-10.1) 4,651,549 4,096,977
Prepayments (Note-10.2) 1,644,800 1,333,947
Advance income tax (Note-10.3) 13,939,167 9,939,167
20,235,516 15,370,091
10.1 Advances
Advance to employees 535,453 1,708,089
General 2,198,384 -
Repairing - 140,000
Farm land rental 145,912 309,908
Advance for commercial feed factory rent 454,800 1,327,500
Advance for staff compensation 225,000 255,000
Advance for calendar - 196,480
Advance for agent seminar 1,092,000 160,000
4,651,549 4,096,977
10.2 Prepayments
10.3 Advance income tax

Opening balance 9,939,167 3,939,167
32,523,754 9,939,167
Adjustment during the year (18,584,587) -
Closing balance 13,939,167 9,939,167
11. CASH AND CASH EQUIVALENTS

Cash in hand
At Farm office 2,430,329 2,051,158
At Head office 573,565 976,021
3,003,894 3,027,179
Balance with Banks:
Pubali Bank Ltd 3,672,929 2,781,942
Janata Bank Ltd. 625,175 483,310
Islami Bank Bangladesh Ltd. 1,810,581 1,798,287
Dutch Bangla Bank Ltd. 671,426 1,870,894
Eastern Bank Limited 13,054,332 -
Agrani Bank Ltd. 1,186,186 -
21,020,629 6,934,433
24,024,523 9,961,612
12. SHARE CAPITAL
Authorized Capital
1,500,000 ordinary shares of Tk. 100 each 150,000,000 150,000,000
Issued and Paid-up Capital
420,000 ordinary shares of Tk. 100 each 42,000,000 42,000,000
At 30 June 2017, shareholdings position of the company are as follows
Shareholders Share Holdings (%)

Renata Limited 99.99 41,994,900 41,994,900
Mr. Syed S. Kaiser Kabir 0.01 5,100 5,100
100 42,000,000 42,000,000
•95
Amount in Taka
30 June 2017 30 June 2016

13. DEFERRED TAX LIABILITY
Other comprehensive income-10% Tax on unrealized gain on share 3,136,387 -
Charge to the profit or loss account (5,644,291) 12,072,342
Closing balance 9,564,438 12,072,342
14. PROVISION FOR GRATUITY

Opening balance 19,728,569 15,698,647
25,278,569 20,006,647
Payment during the year (24,500,000) (278,078)
15. BANK OVERDRAFT

Eastern Bank Ltd. Cash Credit (A/C NO: 00405)-Limit 3 Crore - 10,694,969
16. TRADE AND OTHER PAYABLES

Renata Limited (Medicine) 8,763,730 9,977,575
ACE Pharmaceuticals 192,100 -
ACI Limited 186,500 643,900
Novartis (Bangladesh) Ltd. - 1,418,499
Imperic International Ltd. 61,000 61,000
A R Animal Health Ltd. 514,500 1,542,020
Univet Limited 130,000 65,000
Advance Bio-products Ltd. 87,000 43,500
Advance Animal Science Ltd. 279,065 115,521
Energypac Electronic Ltd. 14,025 -
FTDC Trade & Consultation 60,000 90,000
Bengal Overseas Ltd. 608,399 50,350
Bhai Bhai Enterprise 4,397,585 1,771,291
Al-Modena Traders - 2,544,811
Al-Modena Enterprise - 326,436
RX Nutribet - 221,750
Bio labs 64,500 66,000
Chowdhury Enterprise 1,218,000 -
Blue Cross - 295,931
Grameen Distribution Ltd. 17,855 10,000
Hazi Abdul Karim 704,150 3,715,700
Haque & Sons Enterprise 2,338,760 -
M A Haque Enterprise 1,192,943 -
M/S Pramanic Auto Rice Mills 185,760 -
Md. Shahidul Islam - 730,080
K.M. Hasan & Co. 60,000 60,000
Nasco Agro Products 319,000 -
Nutec Agro BD. Ltd. 38,750 -
Power Stream 174,140 28,732
Pharma Care 255,000 -
Agro Tech 143,760 -
Unic Corporation 1,681,025 -
Tanvir Enterprise 43,462 -

Amount in Taka
30 June 2017 30 June 2016

Shahin Kasto Bitan 527,932
Delwar Paint & Hardware 21,868 -
Zuellig Pharma 351,636 -
RFL Plastics Limited - 56,400
Razzak & Brothers 320,450 -
Resun Steel Corporation 307,600 -
Mouha Mega Power & Traders - 9,180
Tanzil Trading - 5,094,351
Islam Enterprise - 39,500
Green Line Enterprise 260,560 229,820
Niloy Enterprise - 57,000
Modena Trading Corporation - 41,200
Akata Packaging - 282,000
J.M.S.Instrument & Chemicals co. - 53,890
Star Feed 4,200 286,600
Safe Life Animal Health Com. Ltd. 255,000 -
Saidul Store 138,850 -
Sajedul Islam Poultry Services 180,240 -
Poultry Consultant & Development Ltd. - 9,300
Shyamal Bangla Agro Pharma 155,000 -
The print media 13,800 -
X-Link Packaging 472,200 -
ABC Poultry - 186,268
26,740,345 30,123,605
17. COST ACCRUAL
Leave encashment & bonus 13,860,283 11,034,100
13,860,283 11,034,100
18. PROVISION AND OTHER LIABILITIES
Provision (Note:18.1) 4,573,819 7,077,755
Other liabilities (Note:18.2) 27,166,160 27,341,852
31,739,979 34,419,607
18.1 Provision
Chicks carrying cost 3,242,250 3,046,465
Commercial feed carrying cost 1,331,569 4,031,290
4,573,819 7,077,755
18.2 Other liabilities
Renata Limited (Others) - -
Renata Limited (Land) 1,755,934 973,359
Lease hire vehicle - 2,598,017
Agent security deposit (Note-18.2.2) 7,499,837 7,377,421
Employee tax payable 1,500 1,500
Employee providend fund (Note-18.2.3) 645,206 -
Annual bonus payable (Note- 18.2.4) 112,494 -
27,166,160 27,341,852
18.2.1 Payables to employees
Beneficiary's Profit Participation Fund (Note-18.2.1.1) 13,029,873 11,684,646
Beneficiary's Welfare Fund (Note-18.2.1.2) 4,121,316 4,706,909
17,151,189 16,391,555
•97
Amount in Taka
30 June 2017 30 June 2016

18.2.1.1 Beneficiary's Profit Participation Fund (BPPF)
Opening balance 11,684,646 7,970,454
19,116,872 12,758,237
Adjustment (Previous year) - (1,004,044)
Payment during the year (6,086,999) (69,547)
Closing balance 13,029,873 11,684,646
18.2.1.2 Beneficiary's Welfare Fund (BWF)

Addition during the year - 1,198,764
4,706,909 3,702,865
Adjustment (Previous year) - 1,004,044
Payment during the year (585,593) -
Closing balance 4,121,316 4,706,909
18.2.2 Agent security deposit

Deposit during the year 1,156,500 680,000
8,533,921 8,250,258
Refund to the agent (1,034,084) (872,837)
Closing balance 7,499,837 7,377,421
18.2.3 Employee providend fund

Opening balance - -
27,970,899 21,363,379
Payment during the year (27,325,693) (21,363,379)
645,206 -
18.2.4 Annual bonus payable

Opening balance - -
6,806,128 3,055,613
112,494 -
19. PROVISION FOR INCOME TAX

27,478,983 17,700,961
8,894,396 12,614,532
98•renata annual report

Amount in Taka
30 June 2017 30 June 2016

20. REVENUE
Broiler 399,418,555 364,798,534
Eggs 2,161,272 3,338,332
Cull birds 56,220,537 42,466,330
Commercial Feed 19,692,615 100,923,006
Hatching eggs 25,391,780 14,474,738
Commercial Broiler 444,123 2,905,089
Omega-03 33,455,656 24,061,704
Cattle 98,105 258,633
Vitamin-E eggs 13,938,396 13,354,275
Reject Bird Omega-3 Eggs 4,059,134 -
Reject Bird Vitamin-E Eggs 1,842,946 -
Others 3,556,317 2,703,738
560,279,436 569,284,379
Less: Carrying cost 4,130,000 4,104,000
556,149,436 565,180,379
21. COST OF SALES

Cattle feed 481,218 461,158
Feeds & Litter 75,139,857 671,781
Loss of dead birds 6,655,067 5,595,153
Loss on sale of birds 29,563,835 29,860,489
Farm overhead (Note-20.1) 105,631,245 91,940,046
Omega - 03 Project (Note-20.2) 22,900,341 12,218,420
Vitamin-E eggs expenses 11,238,693 10,654,421
Commercial broiler expenses 433,977 2,604,500
Commercial feed expenses 19,954,855 92,205,911
Hatchery expenses 14,918,470 12,693,233
Laboratory expenses 2,515,375 2,419,685
Feeds and Feed mill expenses 9,554,032 87,361,630
Medicine & vaccine 17,475,783 14,087,401
Amortization value of birds 44,433,670 31,859,630
360,896,418 394,633,458
21.1 Farm overhead

Salaries & wages 42,069,543 33,962,054
Telephone bill expenses 182,991 152,879
Guest entertainment 44,916 27,670
Repairs & maintenance 12,443,202 9,145,547
Fuel charges 1,230,937 1,263,417
Medical expenses 270,835 60,362
Donation & subscription 458,699 239,124
Gardening 1,059,864 460,101
Uniform expenses 408,549 517,194
Power (Generator fuel) 15,841,730 6,595,513
Electricity consumption - 10,456,311
Staff lunch & snacks 61,685 43,412
Canteen expenses 4,686,277 4,017,321
Conveyance 149,238 160,970
Carrying Expenses 89,949 147,911
•99
Amount in Taka
30 June 2017 30 June 2016

Poultry equipment's 492,183 430,018
Laboratory testing expense 380 6,000
Stationery expenses 983,972 964,789
Land revenue tax (Farm) 212,790 52,680
Advertisement Expenses 2,550 -
L.P. Gas - 195,383
Union parishad tax 40,000 54,880
Travelling expenses 262,866 11,090
Vehicle rent - 379,786
Rental for farm 901,637 571,920
Sports and games 21,080 33,878
License fees 110,665 335,897
Consultant's fees - 10,000
Depreciation 21,305,710 18,948,613
Miscellaneous 1,053,608 1,400,719
105,631,245 91,940,046
21.2 Omega-03 Project

Salaries & overhead expenses 1,654,678 1,463,295
Electricity consumption - 422,277
Fuel expenses 20,597 297,736
Feeds expenses 11,155,475 7,037,294
Litter Expenses 213,409 -
Eggs box 388,238 176,400
Carriages 41,230 39,939
Canteen expense 460 10,330
Eggs carrying expense 349,915 363,970
Conveyance 50 3,923
Telephone expense 3,600 3,600
Repairs & maintenance 102,376 72,526
Layer eggs purchases - 274,717
Layer Medicine & Vaccine 19,500 -
Layer Electricity and Fuel 979,212 -
Loss of dead birds 181,472 72,460
Loss on sale of birds 4,104,738 38,945
Amortization value of birds 2,423,254 958,253
Lunch & Snacks 3,995 -
Depreciation 1,033,137 877,216
Medical Expenses 1,190 -
Miscellaneous 100,000 761
22,900,341 12,218,420
22. ADMINISTRATIVE EXPENSES

Salaries and allowance 11,085,513 9,069,979
Repair and maintenance 264,320 515,130
Mobile set purchase - 6,000

Amount in Taka
30 June 2017 30 June 2016

Audit fees 115,000 34,500
Telephone bill 109,976 93,161
Conveyance 133,615 151,155
Games & sports 6,020 7,410
Donation & subscription 567,600 323,500
Canteen expenses 311,708 229,967
License renewal fees 85,475 174,448
Crockery 8,574 2,700
Cleaning expense 10,315 9,990
Insurance premium 26,400 46,236
Consultancy expenses 35,150 54,226
Internet / e-mail service 25,684 20,816
Legal fees 181,006 85,672
Vehicle insurance, fitness and road tax 219,949 -
Labour Bill 500 -
Travelling Expenses 91,000 3,380
Tax Paid - 1,361,748
16,469,202 14,155,805
23. MARKETING EXPENSES

Salaries & allowance 6,775,770 5,469,782
Entertainment 31,452 27,043
Telephone bill expenses 233,571 253,864
Carriage & conveyance 12,177 4,470
Internet services - 5,416
Traveling expenses 2,751,775 1,612,861
Repair & maintenance 52,100 179,950
Insurance, road tax and fitness 225 51,065
Business promotional expense 2,305,596 990,000
Training Expenses 2,300 -
Lunch & Snacks 3,890 -
Courier expenses 560 -
Advertisement Expenses 143,767 -
Medical Expense 2,844 120,614
Depreciation 427,296 -
Miscellaneous expenses 117,277 169,272
13,211,764 9,204,642
24. DISTRIBUTION EXPENSES

Salary and allowance 3,731,911 2,740,356
Entertainment - 2,125
•101
Amount in Taka
30 June 2017 30 June 2016

Carriage and conveyance 58,390 45,235
Chicks box 4,892,500 4,804,099
Telephone bill 49,022 52,888
Repair and maintenance 1,176,519 2,012,452
Fuel & lubricant 2,888,981 3,162,925
House rent for chicks 94,200 78,600
Traveling expenses 15,000 1,900
Chicks carrying expenses 940,692 996,889
Uniform for staff 14,523 34,322
Courier expenses 2,450 3,750
Vehicle insurance, fitness and road tax 345,640 314,736
Lunch & Snacks 570 -
15,841,117 15,686,448
25. FINANCE INCOME

Interest on Savings Certificate 337,800 1,947,300
Interest- Company Loan to Employees 144,542 -
Interest- Renata subordinate Loan 986,667 -
Interest- FDR 1,260,000 -
Other Income (Note-25.1) 5,673,899 470,199
8,402,908 2,417,499
25.1 Other Income

Sale of Used Vehicle 4,260,000 400,000
Coupon Interest 860,000 -
Income from Dividend 553,899 70,199
5,673,899 470,199
26. FINANCE EXPENSES

Bank charges 94,973 71,342
Interest on short-term loan - 4,972,035
Interest on overdraft (EBL) 38,296 14,399
Interest on loan from other sources - 949,999
Interest on employees provident fund 1,923,847 2,192,245
2,057,116 8,200,020
27. BASIC EARNINGS PER SHARE (EPS)

Profit/(loss) attributable to ordinary shareholders 139,424,343 89,957,655
Weighted average number of ordinary shareholders 420,000 420,000
331.96 214.18

28. PAYMENTS TO DIRECTORS AND OFFICERS Amount in Taka
The aggregate amount paid during the year to officers of the Company are disclosed below:
Basic 13,779,600
House rent 6,094,692
Bonus 20,669,400
Contribution to provident Fund 1,377,960
Gratuity 5,400,000
Medical expenses 306,000
Conveyance allowance and transport 696,000
48,323,652
29 Disclosure as per requirement of Schedule XI, Part II of the Companies Act, 1994
29.1 Employee Position of the Renata Agro Industries Limited as per requirement of schedule XI, Part II, Para-3
The Company engaged 302 employees of which 201 is permanent employees and 101 is casual and temporary workers
as required. All employees received total salary of above Tk. 36,000 per annum.
30 Payments / receipts in foreign currency
30.1 During the year, the following payments were made in foreign currency for imports, calculated
on CIF basis of:
Foreign currency Foreign currency Local currency

EURO US$ Taka
Machinery and spares 4,992.00 363,917

Machinery and spares 98,590.59 7,187,254
31. EVENTS AFTER THE REPORTING PERIOD
31.1 The Board of directors in its meeting held on September 23, 2017 approved these audited financial statements of the
company for the year ended 30 June 2017 and authorised the same for issue.
31.2 No material events occurred after the date of statement of audited financial position, non-disclosure of which could affect
the ability of the users of these audited financial statements to make appropriate evaluation.

•103
Purnava Limited
Auditors’ Report and Financial Statements for the year ended 30 June 2017
Board of Directors
• Mr. Kaiser Kabir, Chairman
• Mr. Monowarul Islam, Director
• Mr. Manzoor Hasan, Independent Director

With a year on year double digit growth, Purnava Ltd is
gradually paving its way in the preventive health care
market of Bangladesh. This year Purnava focused more
on customer centric interaction through activations,
digital engagements and health awareness events.
Being a warrior in FMCG front, Purnava added more
online and offline stores ensuring wider availability of its
products.
The new product portfolios of last fiscal year are:

1) Chini Go - The first natural sugar substitute
sweetened from the leaves of Stevia
2) Purnava Mosquito Repellent (new formulation &
packaging)
In the second half of 2017, Purnava launched Good

Gut, the best probiotics brand of Bangladesh. Another
ten new home-grown products targeted for both local
and international market are ready to hit the road by
next fiscal year. Investments in new products and
marketing promotions are expected to minimize the
losses for Purnava along with creating a more stable
base for the coming years.
Kaiser Kabir
Chairman
October 15, 2017
•105
AUDITOR'S REPORT
PURNAVA LIMITED
We have audited the accompanying financial statements of Opinion
PURNAVA LIMITED which comprise the statement of financial In our opinion, the financial statements,
position as at 30 June 2017, statement of profit or loss and prepared in accordance with Bangladesh
other comprehensive income, statement of changes in equity Financial Reporting Standards (BFRS's),
and statement of cash flows for the year then ended and a give a true and fair view of the financial
summary of significant accounting policies and other position as at 30 June 2017 and its
explanatory information. financial performance and its cash flows for
the year then ended and comply with the
Management's Responsibility for the Financial Statements Companies Act 1994 and other applicable
Management of PURNAVA LIMITED is responsible for the laws and regulations.
preparation and fair presentation of these financial statements
in accordance with Bangladesh Financial Reporting Standards We also report that:
(BFRS's), and for such internal control as management (a) we have obtained all the information
determines is necessary to enable the preparation of financial and explanations which to the best of
statements that are free from material misstatement, whether our knowledge and belief were
due to fraud or error. necessary for the purposes of our
audit and made due verification
Auditor's Responsibility thereof;
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in (b) in our opinion, proper books of account
accordance with Bangladesh Standards on Auditing (BSA's). as required by law have been kept by
Those standards require that we comply with ethical the company so far as it appeared
requirements and plan and perform the audit to obtain from our examination of those books;
reasonable assurance about whether the financial statements and
are free from material misstatement.
(c) the Company's statement of financial
An audit involves performing procedures to obtain audit position and statement of profit or loss
evidence about the amounts and disclosures in the financial and other comprehensive income
statements. The procedures selected depend on our dealt with by the report are in
judgement, including the assessment of the risks of material agreement with the books of account.
misstatement of the financial statements, whether due to fraud
or error. In making those risk assessments, we consider
internal control relevant to the entity's preparation and fair
presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not
K.M. HASAN & CO.
for the purpose of expressing an opinion on the effectiveness of
the entity's internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the Place: Dhaka
reasonableness of accounting estimates made by Dated: 15 October 2017
management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our audit
opinion.

Purnava Limited
AS AT 30 JUNE 2017
June 30, 2017 June 30, 2016

ASSETS Notes Taka Taka
Non-current assets
Property, plant and equipment 3 2,227,368 1,996,642
Current assets
Inventories 4 40,309,204 61,985,914
Trade and other receivables 5 35,787,177 38,387,672
Advance, deposits and prepayments 6 18,476,374 21,832,559
102,906,610 132,575,538
Total assets 105,133,978 134,572,180
Shareholders' equity
Share capital 8 2,500,000 2,500,000
Retained earnings/(losses) (78,147,698) (18,960,396)
(75,647,698) (16,460,396)
Current liabilities
Trade and other payables 9 176,210,912 148,744,857
Bank overdraft 10 3,601,928 -
Provision for taxation 11 968,836 2,287,719
180,781,676 151,032,576
Total equity and liabilities 105,133,978 134,572,180
The annexed notes form an integral part of these financial statements.
Chairman Director Chief Financial Officer
Signed in terms of our separate report of even date annexed.
Place: Dhaka K. M. HASAN & CO.

Dated: 15 October 2017 Chartered Accountants
•107
Purnava Limited
STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
2016-2017 2015-2016
Notes Taka Taka
Turnover 159,205,830 107,711,014

Cost of sales 12 (113,674,484) (78,309,871)
Gross Profit 45,531,346 29,401,143
Operating Expenses
Administrative, selling and distribution expenses 13 (104,569,412) (48,025,710)

Finance cost (110,399) (131,616)
Other income 14 929,999 48,503
(103,749,812) (48,108,823)
Profit / (Loss) before tax (58,218,466) (18,707,680)
Income tax expenses (968,836) (1,497,235)
Net Profit / (Loss) after tax (59,187,302) (20,204,915)
Other comprehensive income - -
Total comprehensive income (59,187,302) (20,204,915)


Purnava Limited
Amount in Taka
Share Retained
PARTICULARS Total
capital Earnings/(Losses)
Balance as at 01 July 2016 2,500,000 (18,960,396) (16,460,396)
Net Profit /(Loss) for the year - (59,187,302) (59,187,302)
Balance as at 30 June 2017 2,500,000 (78,147,698) (75,647,698)

Share Retained
PARTICULARS Total
capital Earnings/(Losses)
Balance as at 01 July 2015 2,500,000 1,244,519 3,744,519
Net Profit /(Loss) for the year - (20,204,915) (20,204,915)
Balance as at 30 June 2016 2,500,000 (18,960,396) (16,460,396)

•109
Purnava Limited
2016-2017 2015-2016
Taka Taka
A. Cash flows from operating activities:
Collection from customers and others 166,614,548 112,385,743

Payment of VAT (6,810,498) (13,685,662)
Cash generated from operation (29,793,954) (57,951,371)
Finance cost (110,399) (131,616)
Payment of tax (968,836) (1,482,236)
Net cash provided from/(used in) operating activities (30,873,189) (59,565,223)
B. Cash flows from investing activities:
Purchase of Property, plant and equipment (779,146) (319,300)

Sale of Property, plant and equipment 930,000 55,000
Net cash provided from/(used in) investing activities 150,854 (264,300)
C. Cash flows from financing activities:
Short term loan 25,084,869 57,992,066

Bank Overdraft 3,601,928 -
Net cash provided from/(used in) financing activities 28,686,797 57,992,066
D. Net increase/(decrease) in cash and cash equivalents for the year (A+B+C) (2,035,538) (1,837,457)
E. Opening cash and cash equivalents 10,369,393 12,206,850
F. Closing cash and cash equivalents (D+E) 8,333,855 10,369,393
Place: Dhaka
Dated: 15 October 2017

Purnava Limited
AS AT AND FOR THE YEAR ENDED 30 JUNE 2017
1. REPORTING ENTITY
1.1 Company profile

Purnava Limited is a private company limited by share incorporated in Bangladesh on 17 August 2004 under the
Companies Act 1994.
1.2 Registered office and principal place of business

The registered office of the Company is situated at Plot No.01, Milk Vita Road, Section-07, Mirpur, Dhaka-1216.

The principal activities of the company are to carry on the business of marketing and distribution of all kinds of consumer
goods, consumer durables, food items, sugar confectioneries, edible oils, beverages etc. raw materials, semi-finished
items, producers, goods and various other products of local or foreign origin and to engage in the business as traders,
importers, exporters, commission agents of all kinds of goods and services including pharmaceutical drugs and
medicines.
2. SIGNIFICANT ACCOUNTING POLICIES
2.1 Reporting period

The financial year of the company covers the year from 01 July 2016 to 30 June 2017.
2.2 Statement of compliance and Basis of preparation

The financial statements have been prepared in accordance with Bangladesh Accounting Standards (BAS's) and
Bangladesh Financial Reporting Standards (BFRS's) and as per the requirements of the Companies Act 1994.
2.3 Going concern

The company has adequate resources to continue in operation for the foreseeable future. For this reason the
management continue to adopt going concern basis in preparing the Financial Statements. The current credit facilities
and resources of the company provide sufficient funds to meet the present requirements of its existing businesses and
operations.
2.4 Regulatory compliance

The Company is required to comply with amongst others, the following laws and regulations
The Companies Act 1994
The Income Tax Ordinance 1984
The Income Tax Rules 1984
The Value Added Tax (VAT) Act 1991
The Value Added Tax (VAT) Rules 1991
•111
2.5 Component of the financial statements
According to the Bangladesh Accounting Standards "BAS"-1, "Presentation of Financial Statements" a complete set of
Financial Statements include the following components:
a) Statement of Financial Position.
b) Statement of Profit or Loss and Other Comprehensive Income.
c) Statement of Changes in Equity.
d) Statement of Cash Flows.
e) Notes to the Financial Statements.
2.6 Property, plant and equipment and depreciation

Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is charged on a straight line
method over the estimated useful life of each property, plant and equipment. Details are as follows:
2016-2017 2015-2016
Vehicle 5 years 5 years
Furniture & fixture 10 years 10 years
Office equipments 10 years 10 years
2.7 Trade receivable

Trade receivable at the Statement of Financial Position date are stated at amounts which are considered realizable
2.8 Inventories
Inventories are valued at lower of cost and estimated net realizable value. The cost of inventories is valued at weighted
average cost method and includes expenditure for acquiring the inventories and bringing them to their existing location
and condition.
2.9 Cash and cash equivalents

Cash and cash equivalents comprised cash in hand and cash at bank which were held and available for use of the
company without any restriction.

Statement of cash flows has been prepared in accordance with the of "BAS"-7, "Statement of Cash Flows " under the
direct method.
2.11 Revenue
Revenue is recognized upon invoicing the customers for goods sold and delivered net of returns and allowances and
trade discounts.
Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been transferred to
the buyer, the company has no managerial involvement of ownership of the goods, the amount of revenue and the cost
of the transaction can be measured reliably and it is probable that the economic benefit associated with the transactions
will flow to the company.
2.12 Current tax

Current tax expense has been made on the basis of the Finance Act, 2017 and the Income Tax Ordinance, 1984
2.13 Transactions with related parties

The Company has carried on transactions with related parties in the normal course of business.

3. PROPERTY, PLANT AND EQUIPMENT Amount in Taka
COST DEPRECIATION
Balance Additions Disposal/ Balance Rate Balance Charged Disposal/ Balance Written
Particulars as at during Adjustment as at % as at during Adjustment as at down
01.07. the during 30.06. 01.07. the year during 30.06. value as at
2016 year the year 2017 2016 the year 2017 30.06.2017
Vehicles 7,032,510 140,000 1,398,000 5,774,510 20 5,268,853 467,084 1,397,999 4,337,938 1,436,572
Furniture and fixtures 35,528 - - 35,528 10 23,272 3,553 - 26,825 8,703
Office equipments 422,065 639,146 - 1,061,211 10 201,336 77,782 - 279,118 782,093
Balance as at
7,490,103 779,146 1,398,000 6,871,249 5,493,461 548,419 1,397,999 4,643,881 2,227,368
30 June 2017
Balance as at
7,269,803 319,300 99,000 7,490,103 5,087,941 498,023 92,503 5,493,461 1,996,642
30 June 2016
June 30, 2017 June 30, 2016

4. INVENTORIES Taka Taka
Finished goods 32,409,390 55,495,761

Inventory in Transit - 7,722
40,309,204 61,985,914
5. Trade and other receivables
Trade receivables (Note: 5.1) 31,189,616 29,694,420

Other receivables (Note: 5.2) 4,597,561 8,693,252
35,787,177 38,387,672
5.1 Trade receivables
Trade receivables- unsecured 34,227,773 31,685,846

Less: Allowance for doubtful receivables (3,038,157) (1,991,426)
31,189,616 29,694,420
Trade receivables disclosure as per Schedule-XI, Part-1, of The Companies Act, 1994
Receivables due under six months 13,902,873 10,170,419

34,227,773 31,685,846
•113
June 30, 2017 June 30, 2016
5.2 Other receivables Taka Taka
6. ADVANCE, DEPOSITS AND PREPAYMENTS
Advances
Advance Income Tax (Note: 6.1) 991,886 2,310,769
Advances to Employee (Note: 6.2) 229,250 512,500
Advance to Suppliers 2,732,755 -
Advance VAT 171,342 182,788
4,125,233 3,006,057
Prepayments
Prepaid advertisement 14,351,141 18,826,502
18,476,374 21,832,559
6.1 Advance income tax

Add: Addition during the year 968,836 1,497,235
3,279,605 2,855,863
Less: Set Aside For Corporate Tax 2,287,719 545,094
Closing Balance 991,886 2,310,769
6.2 Advance to Employee
Opening balance 512,500 35,000

Advance paid during the year 738,250 477,500
1,250,750 512,500
Less: Adjustment during the year 1,021,500 -
Closing balance 229,250 512,500
7. CASH AND CASH EQUIVALENTS
Cash in hand 50,000 50,000

Cash at bank :
HSBC, Gulshan Branch 8,211,305 5,384,649
Bank Asia Ltd., Mohakhali Branch C/A # 02833000920 - 4,860,894
Sonali Bank Ltd., Custom House Branch C/A # 0130502001394 72,550 73,850
8,333,855 10,369,393

June 30, 2017 June 30, 2016
8. SHARE CAPITAL Taka Taka
Authorized Capital:
2,000,000 Ordinary shares of Tk. 100 each 200,000,000 200,000,000
Issued, Subscribed, Called up & Paid up Capital

25,000 Ordinary shares of Tk. 100 each 2,500,000 2,500,000
Shareholding position of the Company was as follows

No. of Face
Name of the shareholders shares value
Renata Limited 24,999 100 2,499,900 2,499,900

Mr. Syed S. Kaiser Kabir 1 100 100 100
25,000 2,500,000 2,500,000
9. TRADE AND OTHER PAYABLES
Local purchase Others 4,365,853 1,212,854

Local purchase - Renata Agro 2,647,537 3,956,224
Audit fee 34,500 23,000
Withholding tax 274,931 138,757
Withholding VAT 393,760 4,560
Other finance from Renata Limited 168,494,331 143,409,462
176,210,912 148,744,857
10. BANK OVERDRAFT
Bank Asia Limited 3,601,928 -
11. PROVISION FOR TAXATION

Add: Provision made during the year 968,836 1,497,235
3,256,555 2,832,813
Less: Adjustment made during the year (2,287,719) (545,094)
2016-2017 2015-2016
12. COST OF SALES
Taka Taka
Opening inventories ( Finished goods ) 61,978,192 41,634,833
Add: Purchase 92,005,496 98,653,230
153,983,688 140,288,063
Less: Closing inventories ( Finished goods ) 40,309,204 61,978,192
113,674,484 78,309,871
•115
2016-2017 2015-2016
Taka Taka
13. ADMINISTRATIVE, SELLING AND DISTRIBUTION EXPENSES
Salaries, wages and allowances 27,775,323 9,532,619

Advertisement 19,438,259 14,070,933
Travelling & conveyance 1,399,668 703,060
Fuel & lubricants 973,602 1,451,467
Field expenses 15,985,655 7,027,612
Meeting and corporate expenses 1,500,000 1,568,185
Obsolete inventory 5,396,042 -
Sales promotion 23,460,982 6,773,383
Utilities 207,314 1,133,411
Research & development 3,166,892 -
Insurance 155,282 89,008
Repair & maintenance 793,463 195,250
Stationery & supplies 555,326 1,164,244
Provision for bad debts 1,046,730 1,991,427
Entertainment 861,868 248,519
Audit fees 34,500 28,750
Medical Expenses 281,520 368,451
Depreciation 548,419 1,181,368
Other expenses 988,567 498,023
104,569,412 48,025,710
14. OTHER INCOME
Gain on disposal of Property, plant and equipment 929,999 48,503
14.1 Gain on disposal of Property, plant & equipment
Original Cost Accumulated depreciation Carrying amount Sale value Gain
1,398,000 1,397,999 1 930,000 929,999
15. DISCLOSURE AS PER REQUIREMENT OF SCHEDULE XI, PART II OF THE COMPANY ACT 1994:
15.1 Employee Position of the Purnava Limited as per requirement of schedule XI, part II, Para 3
The company engaged 94 employees of which 88 are permanent employees and 6 are casual and temporary workers as required.
Every employees received total remuneration of above Tk. 36,000 per annum.
16. PAYMENTS/ RECEIPTS IN FOREIGN CURRENCY
16.1 During the year the following payments were made in foreign currency for imports calculated on CIF basis of:
Foreign Local
currency currency
US$ Taka
Finished goods 93,392 7,799,194

93,392 7,799,194

17. RELATED PARTY DISCLOSURE Amount in Taka
Transaction (2016-2017)
Name of Party Relationship
Nature of Opening Addition Adjustment Closing
transaction balance Taka Taka Taka balance Taka
Renata Limited Parent Purchase of goods - 59,784,463 59,784,463 -

Advance received 143,409,462 146,088,091 121,003,222 168,494,331
143,409,462 205,872,554 180,787,685 168,494,331
Renata Agro Subsidiary of
Purchase of goods 3,956,224 31,675,828 32,984,515 2,647,537
industries Ltd. parent
3,956,224 31,675,828 32,984,515 2,647,537
18. EVENTS AFTER THE REPORTING PERIOD
18.1 The Board of directors in its meeting held on 15 October 2017 approved the audited financial statement of the company for the
year ended 30 June 2017 and authorised the same for issue.
18.2 No material events occurred after the date of statement of audited financial position, non-disclosure of which could affect the
ability of the users of these audited financial statements to make appropriate evaluation.
19. GENERAL
1) All the figures in the financial statements represent Bangladesh Taka currency (BDT) rounded off to the nearest integer.
2) The comparative information has been disclosed in respect of 30 June 2017 for all numerical information in the financial
statements and also the narrative and descriptive information as found relevant for understanding of the current year's
financial statements.
3) To facilitate comparison, certain relevant balances pertaining to the previous year have been rearranged or reclassified
whenever considered necessary to conform to current year presentation.
Place: Dhaka
Dated: 15 October 2017
•117
Presently, our focus is to increase the product portfolio
for the Company. As such, several new products are
under development.
In addition, work is ongoing to increase our product

portfolio in Active Pharmaceutical Ingredients (APIs).
Kaiser Kabir
Chairman
October 15, 2017
•119
AUDITORS’ REPORT
RENATA ONCOLOGY LIMITED
We have audited the accompanying financial statements, whether due to fraud or error. In making those risk
statements of “Renata Oncology Limited” assessments, the auditor considers internal control relevant to the
which comprise the Statement of Financial entity’s preparation and fair presentation of the financial statements
Position as at June 30, 2017, the Statement in order to design audit procedures that are appropriate in the
of Profit or Loss and Other Comprehensive circumstances, but not for the purpose of expressing an opinion on
Income, the Statement of Changes in Equity, the effectiveness of the entity’s internal control. An audit also
the Statement of Cash flows for the year then includes evaluating the appropriateness of accounting policies used
ended and a summary of significant and the reasonableness of accounting estimates made by
accounting policies and other explanatory management, as well as evaluating the overall presentation of the
notes. financial statements.
Management Responsibilities for the We believe that the audit evidence we have obtained is sufficient and
Financial Statements appropriate to provide a basis for our audit opinion.
Management of Renata Oncology Limited is
responsible for the preparation of financial Opinion
statements that give a true and fair view in In our opinion, the financial statements present fairly, in all material
accordance with Bangladesh Financial respects, the financial position of Renata Oncology Limited which
Reporting Standards and for such internal comprise the Statement of Financial Position as at June 30, 2017, the
control as management determines is Statement of Profit and Loass and Other Comprehensive Income and
necessary to enable the preparation of all other related notes for the period then ended in accordance with
financial statements that are free from Bangladesh Financial Reporting Standards and comply with the
material misstatement, whether due to fraud Companies Act 1994 and other applicable laws and regulations.
or error.
We also report that:
Auditors' Responsibility (i) we have obtained all information and explanations which to
Our responsibility is to express an opinion on the best of our knowledge and belief were necessary along
these financial statements based on our with the bank statement for the purpose of our audit and
audit. We conducted our audit in accordance made due verification thereof and found them satisfactory;
with Bangladesh Standards on Auditing.
Those standards require that we comply with (ii) in our opinion, proper books of account as required by law
ethical requirements and plan and perform were kept by the company so far as it appeared from our
the audit to obtain reasonable assurance examination of those books and proper returns adequate for
about whether the financial statements are the purpose of our audit have been checked by us;
free from material misstatement.
(iii) the Statement of Financial Position and all other related notes
An audit involves performing procedures to are dealt with by this report are in agreement with the books
obtain audit evidence about the amounts and of account and returns;
procedures selected depend on the auditors'
judgment including the assessment of the Place: Dhaka S.P. CHOWDHURY & CO.
risks of material misstatement of the financial Dated: 15 October 2017 Chartered Accountants

Renata Oncology Limited
AS AT JUNE 30, 2017
June 30, 2017 June 30, 2016

ASSETS Notes Taka Taka
Non-Current Assets
Property, plant and equipment 5.00 191,674,516 189,964,382
Capital work-in-progress 6.00 186,128,891 185,803,497
Total non-current assets 377,803,407 375,767,879
Current Assets
Inventories 7.00 39,136,928 29,218,663
Advances, deposits and prepayments 8.00 5,123,036 31,087,491
Cash & cash equivalent 9.00 2,340,085 3,458,887
Total current assets 46,600,049 63,765,041
Total Assets 424,403,456 439,532,920
EQUITY & LIABILITIES
Shareholders' Equity
Ordinary share capital 10.00 80,000,000 80,000,000
Retained earnings 11.00 (27,671,309) (13,365,738)
Total Shareholders' Equity 52,328,691 66,634,262
Non-Current Liabilities
Deferred tax liability 12.00 23,578,114 11,451,538
Total non-current liabilities 23,578,114 11,451,538
Current Liabilities
Short term bank loan 13.00 - 24,727,500
Trade & other payables 14.00 348,445,217 336,700,578
Provision for taxation 15.00 51,434 19,042
Total current liabilities 348,496,651 361,447,120
Total Equity and Liabilities 424,403,456 439,532,920
As per our report of date annexed
Place: Dhaka S.P. CHOWDHURY & CO.

•121
STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED JUNE 30, 2017
2016-2017 2015-2016
PARTICULARS Notes Taka Taka
Revenue 16.00 32,391,586 19,041,147

Cost of goods sold 17.00 32,391,586 19,041,147
Gross Profit - -
Administrative, selling and distribution expenses 18.00 1,521,675 1,671,512
Operating Profit/ (Loss) (1,521,675) (1,671,512)
Other Income - -
Financial Expenses 624,928 223,647
Profit/ (loss) before income tax (2,146,603) (1,895,159)
Tax expenses 12,158,968 11,470,580
Current tax 32,392 19,042
Deferred tax 12.00 12,126,576 11,451,538
Profit/(loss) after tax for the period (14,305,571) (13,365,738)
Other Comprehensive Income

Unrealized gain/(loss) on marketable securities - -
Total comprehensive income/(loss) for the period (14,305,571) (13,365,738)


Amount in Taka
Particulars
Share Capital Retained Earnings Total
Balance at July 01, 2016 80,000,000 (13,365,738) 66,634,262
Profit/(loss) after tax for the year - (14,305,571) (14,305,571)
Balance as at June 30, 2017 80,000,000 (27,671,309) 52,328,691
Amount in Taka
Particulars
Share Capital Retained Earnings Total
Balance at July 01, 2015 80,000,000 - 80,000,000
Profit/(loss) after tax for the year - (13,365,738) (13,365,738)
Balance as at June 30, 2016 80,000,000 (13,365,738) 66,634,262

•123
2016-2017 2015-2016
Taka Taka
A. Cash flows from operating activities:
Collection from customers and other income 32,391,586 19,041,147

Cash generated from operating activities 24,814,378 (9,281,272)
Financing cost (624,928) (223,647)

Payment of tax (766,752) (84,621)
Net cash from operating activities 23,422,698 (9,589,540)
B. Cash flows from investing activities:
Purchase of property, plant and equipment (11,558,639) (67,881,906)

Net cash used in investing activities (11,558,639) (67,881,906)
C. Cash flows from financing activities:
Loan (repaid)/ received - net (12,982,861) 79,036,266

Net cash generated from financing activities (12,982,861) 79,036,266
D. Net cash flows for the year (A+B+C) (1,118,802) 1,564,819
E. Opening Cash and cash equivalents 3,458,887 1,894,068
F. Cash and cash equivalents (D+E) 2,340,085 3,458,887


1.00 Company Profile
Renata Oncology Limited (the Company) is a private limited company incorporated on Twelfth August Two Thousand
and Twelve under the Companies Act 1994. The authorized capital of the Company is Tk.1,000,000,000 divided into
100,000,000 ordinary shares of Tk.10 each with a paid up capital of the Tk. 80,000,000 divided into 8,000,000
ordinary shares of Tk.10 each. The address of the registered office of the Company is Plot - 1, Milk Vita Road,
Section-7, Mirpur Dhaka-1216.
1.01 Nature of Business Activities
The principal activities of the Company are manufacturing, marketing and distribution of various oncology based
products.
2.00 Significant Accounting Policies
2.01 The financial statements have been prepared under the historical cost convention in accordance with Bangladesh
Financial Reporting Standards (BFRSs) and accrual basis of accounting was followed for both cash and accruals
transactions.
2.02 Property, Plant and Equipment
Items of property, plant & equipment is recognized where it is probable that future economic benefits will flow to the
entity and their cost can be measured reliably.
2.03 Measurement at recognition
An items of Property, Plant & Equipment qualifying for recognition is measured at its cost. Cost comprises:
* Purchase price, including all non-recoverable duties and taxes but net of discounts.
* Costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of
operating in the manner intended by the management.
2.04 Subsequent Costs
* Repairs and maintenance expenditure is recognized as expenditure when incurred.

* Replacement parts are capitalized, provided that the original cost of the items they replace is derecognized.
•125
2.05 Depreciation
Depreciation is commenced when the asset is in the location and condition necessary for it to be capable of operating
in the manner intended. Depreciation has been charged on straight line method on all property, plant and equipment
that have already been put on operation except land. Full month's depreciation is charged for the month of acquisition
irrespective of the date of acquisition and no depreciation is charged for the month of disposal.
The rates of depreciation and category of property, plant and equipment are as follows:
Asset Type Depreciation Rate (%)

Building 3%
Plant and machinery 5%-10%
Office equipment 10%-12.50%
Furniture 10%
2.06 Disposal of property, plant and equipment
An item of property, plant and equipment is removed from the statement of financial position when it is disposed of or
when no future economic benefits are expected from its use or disposal. The gain or loss on the disposal of an item
of property, plant and equipment is included in the statement of profit or loss and other comprehensive income of the
period in which the assets are disposed of.
2.07 Capital Work -in-progress
Property, Plant and Equipment under construction / acquisition have been accounted for as capital work-in-progress
until construction / acquisition is completed and measured at cost.
2.08 Inventories
Inventories are valued at lower of cost and net realizable expect for goods in transit which are valued at cost. Cost of
active materials, raw materials and packing materials is valued by using FIFO method and work-in-progress, finished
stocks are determined by using FIFO cost formula including allocation.
2.09 Provisions and contingent liabilities
provision is recognized in the financial statements in line was the BAS-37 "provisions, Contingent Liabilities and
Contingent Assets" when:
* the Company has a legal or constructive obligation as a result of past event;
* a reliable estimate can be made of the amount of the obligation.
2.10 Income tax expenses
Income tax expenses comprise current and deferred tax. Income tax expenses is recognized in the income statement
expect to the extent that it relates to revaluation to property, plant and equipment which is recognized directly in
equity.

2.11 Current Tax
Current Tax expense has been made on the basis of the financial Act, 2017 and the income tax Ordinance, 1984.
2.12 Deferred tax
Deferred tax is recognized using the balance sheet method. Deferred tax arises due to temporary difference
deductible or taxable for the events or transactions recognized in the statement of profit or loss and other
comprehensive income. A temporary difference is the difference between the carrying amounts of assets and
liabilities and its tax base amount in the statement of financial position. Deferred tax asset or liability is the amount of
income tax recoverable or payable in future period(s) recognized in the current period. The deferred tax asset /
income or liability / expense do not create a legal liability / recoverability to and from the income tax authority.
Deferred tax also arises due to revaluation of property, plant and equipment. The resulting impact of deferred tax
assets / liabilities on revaluation surplus is included in the statement of changes in equity.
2.13 Revenue
Revenue is recognized upon invoicing the customers for goods sold and delivered net off returns, allowance and
trade discount.
Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been transferred
to the buyer, the Company has no managerial involvement of ownership of the goods, the amount of revenue and the
cost of the transaction can be measured reliably and it is probable that the economic benefit associated with the
transactions will flow to the company.
2.14 Foreign currency transactions
Foreign currency transactions are accounted for at exchange rate prevailing on the date of transaction. Monetary
assets and liabilities denominated in foreign currencies at reporting date are translated at rates ruling at the
statement of financial position date. All exchange differences are charged / credited to the statement of profit or loss
and other comprehensive income.
Renata Oncology Limited's activities expose it to a variety of financial risks and those activities involve the analysis,
evaluation, acceptance and management of some degree of risk or combination of risks. Taking risk is core to the
financial business, and operational risks are an inevitable consequence of being in business. Renata Oncology
Limited's aim is therefore to achieve an appropriate balance between risk and return and minimize potential adverse
effects on Renata Oncology Limited's financial performance.
Renata Oncology Limited's risk management policies are designed to identify and analyze these risks, to set
appropriate risk limits and controls, and to monitor the risks and adherence to limits by means of reliable and
up-to-date information systems. Renata Oncology Limited regularly reviews its risk management policies and system
to reflect changes in markets, products and emerging best practices.
2.16 Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The senior management of Renata Oncology Limited carefully manages its exposure to
credit risk. Credit exposures arise principally in receivables from customers into Renata Oncology Limited's asset
portfolio. The credit risk management and control are controlled through the credit policies of Renata Oncology
Limited which are updated regularly. The Company is also exposed to other credit risks arising from balances with
banks which are controlled through board approved counterparty limits.
•127
2.17 Liquidity risk
Liquidity risk is defined as the risk that the Company will not able to settle or meet its obligations on time or at a
reasonable price.
The Company's approach toward managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the Company's reputation. Typically, management ensure that it has sufficient cash and
cash equivalents to meet expected operational expenses, including the servicing of financial obligations through
preparation of the cash forecast prepared based on time line of payment of the financial obligations and according
arrange for sufficient liquidity/fund to make the expected payments within due data.
2.18 Cash and Cash Equivalents
Cash and cash equivalents include cash in hand, balance and deposits with financial institutions that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
i) Cash in Hand
We could not verify cash in hand as on June 30, 2017 as our appointment was after the closing date. However, we
have obtained a cash custody certificate from the Management confirming the balance held by them as on that date.
ii) Cash at Bank
We have checked the bank transactions with bank statement, cheque counterfoils deposit slips etc. and the balance
has been agreed with the book of accounts. A balance confirmation certificate has also been obtained from the
concerned bank.
2.19 Functional and presentation currency
These financial statement are prepared in Bangladesh Taka, which is the Company's functional currency.
2.20 Reporting period

The financial period of the company covers from July 01, 2016 to June 30, 2017.
3.00 Directors responsibility statement
According to section 183 of Companies Act 1994 the Board of Directors takes the responsibility for the preparation
and presentation of these financial statements.
4.00 General
Figures in this report have been rounded off to the nearest Taka.

June 30, 2017 June 30, 2016
Taka Taka
5.00 Property, Plant and Equipment
Opening balance 189,964,382 79,912,400

Add: Addition during the year 11,233,245 114,921,146
Less: Depreciation during the year 9,523,111 4,869,164
Less: Sales/ Adjustment during the year - -
Written down value of Property, plant & equipment 191,674,516 189,964,382
5.01 Accumulated Depreciation

Opening Balance 4,869,164 -
Add: Charge during the year 9,523,111 4,869,164
Closing Balance 14,392,275 4,869,164
The details of fixed assets are shown in “Schedule-A”
6.00 Capital work-in-progress
Opening balance 185,803,497 270,909,900

Add. Addition during the period 325,394 29,814,743
186,128,891 300,724,643
Less: Capitalized as property, plant and equipment ( Note: 6.01 ) - 114,921,146
Closing Balance 186,128,891 185,803,497
6.01 The breakdown of capitalized property, plant and equipment is as follows:
Building - 89,308,438
Plant and machinery - 22,479,406
Office equipment - 1,742,756
Furniture - 1,390,546
Total - 114,921,146
7.00 Inventories
This is made up as follows:
Finished Goods 13,030,596 11,290,470

Raw Materials 24,435,908 16,209,353
Packing Materials 533,896 419,460
Consumable stores and spares 1,136,528 1,299,380
Total 39,136,928 29,218,663
•129
June 30, 2017 June 30, 2016
Taka Taka
8.00 Advance, deposits & prepayments
LC Margin Prepayment 4,088,208 30,591,389

Deferred Expense - 130,365
Advance Income Tax 853,489 86,737
Prepaid insurance 181,339 279,000
Total 5,123,036 31,087,491
9.00 Cash & cash equivalents
Cash in Hand Note- 9.01 - -

Cash at Bank Note- 9.02 2,340,085 3,458,887
Total 2,340,085 3,458,887
9.01 Cash in hand
Cash at Head Office - -

Total - -
9.02 Cash at bank
HSBC, Dhaka, Bangladesh A/C: 001-256619-011 - 3,115,678

Bank Asia Ltd. Dhaka, Bangladesh A/C: 02833000989 2,340,085 343,209
Total 2,340,085 3,458,887

June 30, 2017 June 30, 2016
Taka Taka
10.00 Ordinary share capital

Authorized Share Capital
10,00,00,000 Ordinary Shares of Tk. 10 each 1,000,000,000 1,000,000,000
Total 1,000,000,000 1,000,000,000
Issued, Subscribed & Paid- up Capital

80,00,000 Ordinary Shares of Tk. 10 each fully paid 80,000,000 80,000,000
Total 80,000,000 80,000,000
Shareholders No. of Share Face Value Designation Amount in Taka

Mr. Syed S. Kaiser Kabir 100 10 Share Holder 1,000
Renata Limited 7,999,900 10 Share Holder 79,999,000
Total: 8,000,000 80,000,000
June 30, 2017 June 30, 2016

Taka Taka
11.00 Retained earnings
Opening Balance (13,365,738) -

Add: Net Profit/(Loss) after tax for the year (14,305,571) (13,365,738)
Closing Balance (27,671,309) (13,365,738)
12.00 Deferred tax liability

Addition during the period 12,126,576 11,451,538
Closing balance 23,578,114 11,451,538
Deferred tax liability has been recognized in accordance with the provision of IAS 12 based on temporary differences
arising due to difference in the carrying amount of the assets or liabilities and its tax base.
•131
Carrying Taxable/
amount on (deductible)
Tax base
balance sheet temporary
date difference
BDT BDT BDT
For the period ended June 30, 2017
Property, plant and equipment - (Excluding land) 191,674,516 124,308,476 67,366,040

Revaluation surplus - - -
191,674,516 124,308,476 67,366,040
Gratuity provision - - -
Provision for obsolete and inventories - - -
Provision for doubtful debts - - -
Temporary difference 67,366,040
Applicable tax rate 35.00%
Deferred tax liability as on June 30, 2017 23,578,114
For the period ended June 30, 2016
Property, plant and equipment - (Excluding land) 189,964,382 143,695,540 46,268,842

Revaluation surplus - - -
189,964,382 143,695,540 46,268,842
Gratuity provision - - -
Provision for obsolete and inventories - - -
Provision for doubtful debts - - -
Temporary difference 46,268,842
Applicable tax rate 35.00%
Deferred tax liability as on June 30, 2016 11,451,538
Total
June 30, 2017 June 30, 2016

Taka Taka
13.00 Short term bank loan
Bank Asia Ltd, Mohakhali Branch, Dhaka, Bangladesh - 24,727,500

Total - 24,727,500

June 30, 2017 June 30, 2016
Taka Taka
14.00 Trade & others payable
Trade Payable - 8,896,708

Withholding VAT Payable 40,765 91,238
Inventory AP Accrual 12,020,599 1,367,218
Accrued Professional-Audit Fees 57,500 23,000
Payables to Renata Limited 336,299,307 326,273,629
Withholding Income Tax Payable 27,046 48,785
Total 348,445,217 336,700,578
14.01 Payables to Renata Limited
Opening balance 326,273,629 265,110,042

Add. Expenditure made during the year 84,985,349 61,163,587
411,258,978 326,273,629
Less: Refund/adjustment during the year 74,959,671 -
Total 336,299,307 326,273,629
The above amount payable to Renata Limited for expenditure incurred for the company on the balance sheet date.
15.00 Provision for Taxation
Opening balance 19,042 -

Add: Provision made during the year 32,392 19,042
51,434 19,042
Less: Tax paid during the year - -
Closing Balance 51,434 19,042
2016-2017 2015-2016
Taka Taka
16.00 Revenue

Cash Sales - 27,657
Sales to Renata 32,391,586 19,013,490
Total 32,391,586 19,041,147
•133
2016-2017 2015-2016
Taka Taka
17.00 Cost of Goods Sold
Opening Work-in Process - -

Raw Materials Consumed Note- 17.01 6,238,995 7,448,322
Salary, Wages & Allowances 1,982,629 1,400,862
Factory overhead Note- 17.02 25,910,088 21,482,433
Less: Closing Work-in Process - -
Cost of Production 34,131,712 30,331,617
Add: Opening stock of finished goods 11,290,470 -
Cost of Goods Available for Sale 45,422,182 30,331,617
Less: Closing stock of finished goods 13,030,596 11,290,470
Cost of Goods Sold 32,391,586 19,041,147
17.01 Raw Materials Consumed
This is arrived at as follows:
Opening stock 16,628,813 -

Add: Purchase during the year 14,579,986 24,077,135
Total materials available 31,208,799 24,077,135
Less: Closing stock 24,969,804 16,628,813
Raw material consumed 6,238,995 7,448,322
17.02 Factory Overhead

Electricity and fuel 2,777,049 11,007,456
Insurance 460,339 1,240,836
Rent 18,000 84,000
Travelling expenses 5,550 3,795
Repair & maintenance 11,765,150 3,620,643
Depreciation 9,523,111 4,868,929
Other overhead expenses 777,489 469,205
Electrical Supplies 58,463 93,689
General Expenses 524,937 93,880
Total 25,910,088 21,482,433
18.00 Administrative, Selling and Distribution Expenses
Salaries, wages and allowances 1,230,675 881,224

Meeting & corporate expenses 104,976 195,390
Traveling Expense 32,461 91,251
Audit fee 34,500 46,000
License & Fees 109,063 429,591
Depreciation - 235
Other overhead expenses 10,000 27,821
Total 1,521,675 1,671,512

2016-2017 2015-2016
Taka Taka
Foreign Local
Currency currency
US$ Taka
19.00 Payments in foreign currency
Active, raw and packaging materials 20,954 1,677,522

Machinery and spares 388,547 30,578,060
Total 409,501 32,255,582
20.00 Employee Position
The Company engaged 10 permanent employees who received total salary above Tk. 36,000 per annum.
Transaction (2016-2017)
Name of Party Relationship Nature of Opening Addition Adjustment Closing
transactions balance Taka Taka balance
Taka Taka
Sales of goods - 32,391,586 32,391,586 -

Renata Limited Parent Advance received 326,273,629 84,985,349 74,959,671 336,299,307
326,273,629 117,376,935 107,351,257 336,299,307
22.00 General
22.01 Contingent liabilities
None as at June 30, 2017
22.02 Rounding off
Amounts appearing in these financial statements have been rounded off to the nearest Taka.
•135
Renata Oncology Limited SCHEDULE A
SCHEDULE OF PROPERTY, PLANT & EQUIPMENT

AS AT JUNE 30, 2017
(Amount in Taka)
Cost Depreciation
Written
Balance Addition Balance Balance Charged Balance
Particulars down value
as at during the as at Rate as at during the as at
30.06.2017
01. 07. 2016 Period 30.06.2017 01. 07. 2016 period 30.06.2017
Building 89,308,438 - 89,308,438 3% 1,559,859 2,675,563 4,235,422 85,073,016

Plant and machinery 102,391,806 10,358,960 112,750,766 5%-10% 3,164,345 6,476,043 9,640,388 103,110,378
Office equipment 1,742,756 - 1,742,756 10%-12.50% 78,208 203,248 281,456 1,461,300
Furniture 1,390,546 874,285 2,264,831 10% 66,752 168,257 235,009 2,029,822
Total June 30, 2017 194,833,546 11,233,245 206,066,791 4,869,164 9,523,111 14,392,275 191,674,516
Total June 30, 2016 79,912,400 114,921,146 194,833,546 - 4,869,164 4,869,164 189,964,382

as at and for the year ended 30 June 2017
•137
We have audited the accompanying financial statements in order to design audit procedures that are
consolidated financial statements of Renata appropriate in the circumstances, but not for the purpose of expressing
Limited, which comprise the statement of an opinion on the effectiveness of the entity’s internal control. An audit
financial position as at 30 June 2017 and the also includes evaluating the appropriateness of accounting policies used
consolidated statement of profit or loss and and the reasonableness of accounting estimates made by management,
other comprehensive income, consolidated as well as evaluating the overall presentation of the consolidated
statement of changes in equity and financial statements.
consolidated statement of cash flows for the We believe that the audit evidence we have obtained is sufficient and
year then ended, and a summary of significant appropriate to provide a basis for our audit opinion.
accounting policies and other explanatory
information. Opinion
In our opinion, the consolidated financial statements prepared in
Management's Responsibility for the accordance with Bangladesh Financial Reporting Standards (BFRSs),
Financial Statements give a true and fair view of the consolidated financial position of Renata
Management is responsible for the preparation Limited as at 30 June 2017 and the results of its financial performance
and fair presentation of these consolidated and its statement of cash flows for the year then ended and comply with
financial statements in accordance with the Companies Act 1994, the Securities and Exchange Rules 1987 and
Bangladesh Financial Reporting Standards, other applicable laws and regulations.
and for such internal control as management
determines is necessary to enable the We also report that:
preparation of financial statements that are free
from material misstatement, whether due to a) we have obtained all the information and explanations which to the
fraud or error. best of our knowledge and belief were necessary for the purpose of
our audit and made due verification thereof;
Auditors' Responsibility b) in our opinion, proper books of account as required by law have
Our responsibility is to express an opinion on been kept by the company so far as it appeared from our
these consolidated financial statements based examination of those books;
on our audit. We conducted our audit in c) the statement of financial position and statement of profit or loss and
accordance with Bangladesh Standards on other comprehensive income dealt with by the report are in
Auditing. Those standards require that we agreement with the books of account; and
comply with ethical requirements and plan and d) the expenditure incurred was for the purpose of the company’s
perform the audit to obtain reasonable business.
assurance whether the financial statements
are free from material misstatement.
An audit involves performing procedures to

obtain audit evidence about the amounts and
procedures selected depend on our judgment,
including the assessment of the risks of
material misstatement of the financial
statements, whether due to fraud or error. In
making those risk assessments, we consider
internal control relevant to the entity’s Place: Dhaka S. F. Ahmed & Co.
preparation and fair presentation of the Dated: 21 October 2017 Chartered Accountants

RENATA LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017
Amount in Taka
ASSETS Notes 30 June 2017 30 June 2016

Non-current assets
Property, plant and equipment 5 9,799,446,048 9,549,095,438
Capital work-in-progress 6 1,258,756,142 903,725,332
Long term investment 7 11,794,720 24,894,720
11,069,996,910 10,477,715,490
Current assets
Inventories 8 3,396,070,814 3,541,537,632
Trade and other receivables 9 2,326,868,750 2,382,112,229
Advance, deposits and prepayments 10 339,783,944 302,354,739
Investment in shares and others 11 934,669,945 149,974,150
7,649,327,944 6,850,380,084
TOTAL ASSETS 18,719,324,854 17,328,095,574

Share capital 13 608,965,410 529,535,140
Revaluation surplus 14 155,285,034 156,281,949
Tax holiday reserve 15 46,637,673 46,643,337
Available for sale reserve 49,859,242 31,640,743
Retained earnings 16 12,082,218,918 10,176,639,171
Equity attributable to equity holders of Renata Limited 12,942,966,277 10,940,740,340
Non-controlling interests 17 74,723 56,911
Total equity 12,943,041,000 10,940,797,251
Non-current liabilities
Long term loans - net off current portion 18 95,910,932 250,095,990
Deferred tax liability 19 1,170,470,120 970,413,404
1,266,381,052 1,220,509,394
Current liabilities
Short term bank loans and overdrafts 20 1,972,453,954 2,633,744,930
Long term loans - current portion 18 161,200,000 156,800,003
Trade payables 21 202,413,022 302,611,671
Accruals 22 695,223,269 520,332,876
Provisions and other liabilities 23 692,935,580 576,165,360
Unclaimed dividend 24 26,585,338 16,758,741
Provision for taxation 25 759,091,639 960,375,348
4,509,902,802 5,166,788,929
TOTAL EQUITY AND LIABILITIES 18,719,324,854 17,328,095,574
Net asset value per share (NAV) 212.54 179.66
Place: Dhaka S. F. Ahmed & Co.

•139
RENATA LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
Amount in Taka
Notes 2016- 2017 2015-2016

Turnover 26 16,644,965,966 14,777,109,534
Cost of sales 27 (8,301,255,277) (7,343,299,440)
Gross profit 8,343,710,689 7,433,810,094
Administrative, selling and distribution expenses 28 (4,215,040,459) (3,702,630,061)

Other income 29 45,292,475 15,930,197
Operating profit 4,173,962,705 3,747,110,230
Finance costs 30 (201,950,341) (279,001,241)

Profit before contribution to WPPF 3,972,012,364 3,468,108,989
Contribution to WPPF (192,017,973) (166,129,132)

Profit before tax 3,779,994,391 3,301,979,857
Tax expenses
Current tax 25 (907,245,115) (753,629,600)
Deferred tax 19 (194,675,391) (274,048,962)
(1,101,920,506) (1,027,678,562)
Attributable to:
Equity holders of Renata Limited 2,678,059,501 2,274,293,138
Non-controlling interests 14,384 8,157
Total profit after tax for the year 2,678,073,885 2,274,301,295

Item that may be reclassified to profit or loss
Unrealized gain/(loss) on quoted shares, net of tax 18,218,499 1,543,937
Attributable to:
Equity holders of Renata Limited 2,696,274,572 2,275,837,075
Non-controlling interests 17,812 8,157
Basic earnings per share 31 43.98 37.35
Place: Dhaka S. F. Ahmed & Co.


RENATA LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Amount in Taka
Attributable to equity holders of Renata Limited

Non- Total
Particulars Share Revaluation Tax holiday Available for Retained Equity for controlling
interest equity
Renata
capital surplus reserve sale reserve earnings Limited
Balance at 01 July 2015 529,535,140 156,758,862 342,980,406 30,096,806 7,605,373,079 8,664,744,293 48,754 8,664,793,047
depreciation charged to revaluation reserve - 158,972 - - - 158,972 158,972
Depreciation adjustment on revalued assets - (635,885) - - 635,885 - -
Net profit after tax for the year - - - - 2,274,293,138 2,274,293,138 8,157 2,274,301,295
Unrealized gain/(loss) on quoted shares - - - 1,543,937 - 1,543,937 1,543,937
Addition of tax holiday reserve - - 18,690,370 - (18,690,370) - - -
Transfer of tax holiday reserve - - (315,027,439) - 315,027,439 - -
Balance at 30 June 2016 529,535,140 156,281,949 46,643,337 31,640,743 10,176,639,171 10,940,740,340 56,911 10,940,797,251
Balance at 01 July 2016 529,535,140 156,281,949 46,643,337 31,640,743 10,176,639,171 10,940,740,340 56,911 10,940,797,251
Stock dividend issued 79,430,270 - - - (79,430,270) - - -
Final dividend - - - - (450,104,869) (450,104,869) - (450,104,869)
Interim dividend - - - - (243,586,164) (243,586,164) - (243,586,164)
depreciation charged to revaluation reserve, net - (361,030) - - - (361,030) - (361,030)
Depreciation adjustment on revalued assets - (635,885) - - 635,885 - - -
Adjustment for non-controlling interest share
of tax holiday reserve - - (5,664) 5,664 - - -
Net profit after tax for the year - - - - 2,678,059,501 2,678,059,501 14,384 2,678,073,885
Unrealized gain/(loss) on quoted shares - - - 18,218,499 - 18,218,499 3,428 18,221,927
Balance at 30 June 2017 608,965,410 155,285,034 46,637,673 49,859,242 12,082,218,918 12,942,966,277 74,723 12,943,041,000
•141
RENATA LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
Amount in Taka
2016 - 2017 2015 - 2016
A. Cash flows from operating activities
Collection from customers and other income 19,765,123,609 17,261,672,219

Payment of VAT (2,298,536,613) (2,067,173,568)
Payment to suppliers and employees (12,493,486,552) (12,474,211,586)
Cash generated by operation 4,973,100,444 2,720,287,065
Finance costs (201,950,341) (220,845,496)

Payment of tax (1,111,976,694) (549,243,096)
Net cash generated from operating activities 3,659,173,409 1,950,198,473
B. Cash flows from investing activities
Purchase of property, plant and equipment (1,279,364,528) (1,230,474,376)

Investment in shares and others (763,605,722) 5,268,133
Sale proceeds of property, plant and equipment 20,760,963 3,630,000
Net cash used in investing activities (2,022,209,287) (1,221,576,243)
C. Cash flows from financing activities
Loan (repaid) / received (net) (774,246,530) (212,298,963)

Dividend paid (685,184,435) (304,510,762)
Net cash used in financing activities (1,459,430,965) (516,809,725)
D. Net cash inflow for the year (A+B+C) 177,533,157 211,812,505
E. Cash and cash equivalents at the beginning of the year 474,401,334 262,588,829
F. Cash and cash equivalents at the end of the year (D+E) 651,934,491 474,401,334

RENATA LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Reporting entity
1.1 Company profile

Renata Limited (the “Company”) is a Public Limited Company incorporated in Bangladesh in 1972 as Pfizer Laboratories
(Bangladesh) Limited under the Companies Act 1913. The Company was listed with Dhaka Stock Exchange Limited on 12
May 1979. Subsequently, the Company was renamed as Renata Limited in 1993. The registered office of the Company is
situated at Plot # 1, Milk Vita Road, Section-7, Mirpur, Dhaka-1216.

The principal activities of the Company are manufacturing, marketing and distribution of pharmaceutical and animal health
products.
1.3 Subsidiaries
Subsidiaries are entities controlled by Renata Limited. An investor controls an investee when it is exposed, or has rights, to
variable returns from its involvement with the investee and has the ability to affect those returns through its power over the
investee. The followings are the subsidiaries of Renata Limited:
Renata Agro Industries Limited, a subsidiary Company of Renata Limited, was incorporated on 7 September 1997 as a
private limited Company under the Companies Act 1994 with authorized share capital of Tk. 150,000,000 divided into
1,500,000 ordinary shares of Tk. 100 each. The Company commenced its commercial operation from October 1998. The
principal activities of the Company comprise of poultry breeding and hatching and selling of various agro based products.
Purnava Limited
Purnava Limited, a subsidiary Company of Renata Limited, was incorporated on 17 August 2004 as a private limited
Company under the Companies Act 1994 with authorized share capital of Tk. 200,000,000 divided into 2,000,000 ordinary
shares of Tk. 100 each. The Company commenced its commercial operation in 2009. The principal activities of the Company
are manufacturing, marketing and distribution of all kinds of consumer goods, consumer durables, food items, edible oils etc.
and to engage in the business as traders, importers, exporters, commission agents of all kinds of goods and services
including pharmaceutical products.

Renata Oncology Limited, a subsidiary Company of Renata Limited, was incorporated on 12 August 2012 as a private limited
Company under the Companies Act 1994 with authorized share capital of Tk. 1,000,000,000 divided into 100,000,000
ordinary shares of Tk. 10 each. The principal activities of the Company are manufacturing, marketing and distribution of drugs
and medicines, allopathic and indigenous and particularly produce and prepare biological and non-biological drugs,
injectables of all kinds of tablets of all sorts, serum, vaccines syrup both medicated and non-medicated.
2. Basis of preparation of financial Statements
2.1 Reporting framework and compliance thereof

The financial statements have been prepared in compliance with the requirements of the Companies Act 1994, the Securities
and Exchange Rules 1987, the Listing Regulations of Dhaka Stock Exchange (DSE) and other relevant local laws as
applicable, and in accordance with the applicable Bangladesh Financial Reporting Standards (BFRSs) including Bangladesh
Accounting Standards (BASs) adopted by the Institute of Chartered Accountants of Bangladesh (ICAB) based on
International Financial Reporting Standards (IFRSs).
2.2 Measurement of elements in the financial statements

Measurement is the process of determining the monetary amounts at which the elements of the financial statements are to
be recognized and carried in the statement of financial position and profit or loss and other comprehensive income. The
measurement basis adopted by Renata Limited is historical cost except for few of the property, plant and equipment, financial
assets and inventories which are stated in accordance with the policies mentioned in the respective notes.
2.3 Basis of consolidation

The group financial statements include the financial statements of Renata Limited and subsidiaries that it controls. The
company prepares consolidated financial statements using uniform accounting policies for like transactions and other events
in similar circumstances. Consolidation of an investee shall begin from the date the investor obtains control of the investee
•143
and cease when the investor loses control of the investee. Intra-group assets and liabilities, equity, income, expenses and
cash flows relating to transactions between entities of the group are eliminated in full. Profits or losses resulting from
intra-group transactions that are recognised in assets are eliminated in full. The company presents non-controlling interests
in the consolidated statement of financial position within equity, separately from the equity of the owners of Renata Limited.
2.4 Functional and presentational currency and level of precision

The financial statements are prepared in Bangladesh Taka (BDT), which is the company's functional currency. All financial
information is presented in BDT and has been rounded off to the nearest BDT.
2.5 Use of estimates and judgment

The preparation of financial statements in conformity with Bangladesh Financial Reporting Standards requires management
to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts
of assets, liabilities, income and expenses, and disclosures requirements for contingent assets and liabilities during and at
the date of the financial statements.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions of accounting estimates are recognized in the period in which the estimate is revised and in any future periods
affected as required by BAS 8: Accounting Policies, Changes in Accounting Estimates and Errors.
In particular, significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the
most significant effect on the amounts recognized in the financial statements include depreciation, amortization, impairment,
net realizable value of inventories, accruals, taxation and provision.
2.6 Comparative Information and Rearrangement thereof

Comparative figures have been re-arranged wherever considered necessary to ensure better comparability with the current
period without causing any impact on the profit and value of assets and liabilities as reported in the financial statements.
2.7 Going Concern

When preparing financial statements, management makes an assessment of Renata Limited’s ability to continue as a going
concern. Renata Limited prepares financial statements on a going concern basis.
2.8 Accrual Basis of Accounting

Renata Limited prepares its financial statements, except for cash flow information, using the accrual basis of accounting.
Since the accrual basis of accounting is used, Renata Limited recognizes items as assets, liabilities, equity, income and
expenses (the elements of financial statements) when they satisfy the definitions and recognition criteria for those elements
in the Framework.
2.9 Materiality and Aggregation

Renata Limited presents separately each material class of similar items. The Company presents separately items of a
dissimilar nature or function unless they are immaterial. Financial statements result from processing large numbers of
transactions or other events that are aggregated into classes according to their nature or function.
2.10 Offsetting
Renata Limited does not offset assets and liabilities or income and expenses, unless required or permitted by a BFRS.
2.11 Date of Authorization for Issue of the Financial Statements

On 21 Octber 2017 the Board of Directors reviewed the financial statements and authorized them for issue.
3. Summary of Significant accounting policies

Renata Limited selects and applies its accounting policies consistently for similar transactions, other events and conditions,
unless a BFRS specifically requires or permits categorization of items for which different policies may be appropriate. The
accounting policies set out below have been applied consistently in all material respects to all period presented in these
financial statements:
Changes in accounting policies

Renata Limited changes its accounting policy only if the change is required by a BFRS or results in the financial statements
providing reliable and more relevant information about the effects of transactions, other events or conditions on the
company’s financial position, financial performance or cash flows. Changes in accounting policies is to be made through
retrospective application by adjusting opening balance of each affected components of equity i.e. as if new policy has always
been applied.
Changes in accounting estimates

Estimates arise because of uncertainties inherent within them, judgment is required but this does not undermine reliability.
Effect of changes of accounting estimates is included in profit or loss account.

Correction of error in prior period financial statements
Renata Limited corrects material prior period errors retrospectively by restating the comparative amounts for the prior
period(s) presented in which the error occurred; or if the error occurred before the earliest prior period presented, restating
the opening balances of assets, liabilities and equity for the earliest prior period presented.
3.1 Property, plant and equipment (PPE)

Recognition and measurement
The cost of an item of property, plant and equipment is recognized as an asset if, and only if it is probable that future
economic benefits will flow to Renata Limited and the cost of the item can be measured reliably. An item of property, plant
and equipment that qualifies for recognition as an asset is measured at its cost.
Elements of Costs
• Purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts
and rebates.
• Costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of
operating in the manner intended by the management.
• The initial estimate of the cost of dismantling and removing the item and restoring the site on which it is located.
Subsequent Costs
• Costs of day to day servicing [repairs and maintenance] are recognized as expenditure as incurred.
• Replacement parts are capitalized, provided the original cost of the items they replace is derecognized.
Measurement of property, plant and equipment after recognition
Cost model
After recognition as an asset, an item of property, plant and equipment is carried at its cost less any accumulated
depreciation and any accumulated impairment losses.
Revaluation model
After recognition as an asset, an item of property, plant and equipment is to be measured at a revalued amount, which is its
fair value less subsequent accumulated depreciation and impairment accumulated losses.
Where an asset’s carrying amount is increased as a result of a revaluation, the increase is recognised in other
comprehensive income and accumulated in equity under the heading of revaluation surplus. However, the increase is
recognised in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in
profit or loss. Where an asset’s carrying amount is decreased as a result of a revaluation, the decrease is recognised in profit
or loss. However, the decrease is recognised in other comprehensive income to the extent of any credit balance existing in
the revaluation surplus in respect of that asset. The revaluation surplus included in equity in respect of an item of property,
plant and equipment is transferred directly to retained earnings as the asset is used by Renata Limited.
Depreciation
The depreciation charge for each period is recognised in profit or loss unless it is included in the carrying amount of another
asset. Depreciation of an asset begins when it is available for use, i.e. when it is in the location and condition necessary for
it to be capable of operating in the manner intended by management. The residual value and the useful life of an asset is
reviewed at least at each financial year-end and, if expectations differ from previous estimates, the change(s) shall be
accounted for as a change in an accounting estimate. Depreciation has been charged on straight-line method on all property,
plant and equipment that have already been put on operation except land. Full month's depreciation is charged from the
month the asset is put into use and no depreciation is charged for the month of disposal. Rates of depreciation considering
the useful lives of respective assets are as follows:
Depreciation rate (%)

Asset Type
30 June 2017 30 June 2016
Buildings 1.54-5 1.54-5
Plant and machinery 5-20 5-20
Automobiles 25 25
Office equipment 10-12.5 10-12.5

10
Furniture and fixtures 10
•145
Derecognition of property, plant and equipment
The carrying amount of an item of property, plant and equipment is derecognised on disposal or when no future economic
benefits are expected from its use or disposal. The gain or loss arising from derecognition of an item of property, plant and
equipment is included as other income in profit or loss when the item is derecognised. When the revalued assets are
disposed off, the respective revaluation surplus is transferred to retained earnings.
3.2 Capital- work- in progress

Capital work in progress represents the cost incurred for acquisition and construction of items of property, plant and
equipment that were not ready for use at the end of 30 June 2017 and these were -stated at cost. In case of import
components, capital work in progress is recognised when risks and rewards associated with such assets are transferred to
the Group, i.e. at the time shipment is confirmed by the supplier.
3.3 Impairment of Assets

If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its
recoverable amount. That reduction is an impairment loss. An impairment loss on a non-revalued asset is recognised in profit
or loss. However, an impairment loss on a revalued asset is recognised in other comprehensive income to the extent that the
impairment loss does not exceed the amount in the revaluation surplus for that same asset. Such an impairment loss on a
revalued asset reduces the revaluation surplus for that asset.
Renata Limited assesses at the end of each reporting period whether there is any indication that an asset may be impaired.
If any such indication exists, Renata Limited estimates the recoverable amount of the asset.
3.4 Financial Instruments
3.4.1 Financial assets
Investment in shares
Investment in shares are classified as available for sale financial assets and initially measured at the fair value of the
consideration given (i.e. cost) plus (in most cases) transaction costs that are directly attributable to the acquisition of the
financial asset. Investments in shares are re-measured to fair value, without any deduction for transaction costs that may be
incurred on sale or other disposal. Gains and losses on re-measurement is recognised as follows:
• Impairment losses are recognised in profit or loss.

• All other gains and losses are recognised in other comprehensive income and held in a separate component in equity.
On derecognition, either through sale or impairment, gains and losses previously recognised in other comprehensive
income is reclassified to profit or loss, becoming part of the gain or loss on derecognition.
Trade Receivables
Trade receivables are recognized and stated at original invoiced amounts and carried at anticipated realizable values. Bad
debts are written off when it is established that they are irrecoverable. Specific allowance is made for known doubtful debts.
An estimate is made for doubtful debts based on a review of all outstanding amounts as at the financial position date.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, balance and deposits with financial institutions that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of changes in value.
3.4.2 Financial liabilities
Borrowings
Borrowings are recorded at the amount of proceeds received. Borrowings are re-measured at amortised cost using the
effective interest method.
Trade payables
Trade payables are stated at cost which approximates the fair value of the consideration to be paid in the future for goods
and services received.
3.4.3 Impairment of financial assets

At each year end, Renata Limited assesses whether there is any objective evidence that a financial asset or group of assets
is impaired. Where there is objective evidence of impairment, Renata Limited determines the amount of any impairment loss.

3.5 Inventories
Measurement
Inventories are measured at the lower of cost and net realizable value except for goods in transit which are valued at cost.
Cost of inventories
The cost of inventories are comprised of all costs of purchase, costs of conversion and other costs incurred in bringing the
inventories to their present location and condition. Cost of active materials, raw materials and packing materials is assigned
by using the first-in, first-out (FIFO) cost formula. Cost of work-in-progress and finished stocks are determined by using FIFO
cost formula including allocation of manufacturing overheads related to bringing the inventories to their present condition.
The Company uses standard cost method for measurement of cost of finished goods.
Recognition as an expense
When inventories are sold, the carrying amount of those inventories is recognised as an expense in the period in which the
related revenue is recognised. The amount of any write-down of inventories to net realisable value and all losses of
inventories is recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any
write-down of inventories, arising from an increase in net realisable value, is recognised as a reduction in the amount of
inventories recognised as an expense in the period in which the reversal occurs.
3.6 Provisions, accruals and contingencies
Recognition
Provisions
A provision is recognised when Renata Limited has a present obligation (legal or constructive) as a result of a past event; it
is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and a reliable
estimate can be made of the amount of the obligation.If these conditions are not met, no provision is recognised.
Accruals
Accruals are liabilities to pay for goods or services that have been received or supplied but have not been paid, invoiced or
formally agreed with the supplier, including amount due to employees.
Contingent Liabilities
Renata Limited does not recognise a contingent liability. A contingent liability is disclosed, unless the possibility of an outflow
of resources embodying economic benefits is remote.
Contingent Asset
Renata Limited does not recognise a contingent asset. Contingent assets usually arise from unplanned or other unexpected
events that give rise to the possibility of an inflow of economic benefits to Renata Limited.
Measurement
The amount recognised as a provision is the best estimate of the expenditure required to settle the present obligation at the
Changes and use of provisions
Provisions is reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer
probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is
reversed
3.7 Post-employment benefits
Defined contribution plan

The Company operates a recognized provident fund scheme where employees contribute 8.33% up to 5 years and over 5
years 10% of their basic salary with equal contribution by the Company. The provident fund is being considered as defined
contribution plan being managed by a Board of Trustees. Renata Limited recognises contributions payable as an expense in
•147
the period in which the employee provides services. A liability is recognised where contributions arise in relation to an
employee's service, but remain unpaid at the period end.
Defined benefit plan

The Company had operated an unfunded gratuity plan till 29 December 2015 and thereafter, effective from 30 December
2015, the scheme has been converted to a funded one. Employees are entitled to get gratuity benefit after completion of
minimum seven years of service with the Company. The gratuity is calculated on the last drawn basic pay and is payable at
the rate of one month’s basic pay for every completed year of service while one and half months’ basic pay for more than ten
years of service. Actuarial valuation of the fund is carried out at 31 December 2016 by a professional actuary.
Group Insurance Scheme

The Company operates a group insurance scheme for its permanent employees.
Worker’s profit participation and welfare fund

The Company has created a workers’ profit participation and welfare fund in compliance with “The Bangladesh Labour Act,
2006” (as amended in 2013) and 5% of profit before charging such expenses is transferred to this fund.
3.8 Borrowing cost

Renata Limited capitalises borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset as part of the cost of that asset. Renata Limited recognises other borrowing costs as an expense in the period
in which it incurs them.
3.9 Reporting foreign currency transactions
Initial recognition
A foreign currency transaction is recorded, on initial recognition in the functional currency, by applying to the foreign currency
amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.
Subsequent measurement
A foreign currency transaction may give rise to assets or liabilities that are denominated in a foreign currency. These assets
and liabilities is translated into Renata Limited’s functional currency at each reporting date. Foreign currency monetary items
outstanding at the end of the reporting date are translated using the closing rate. The difference between this amount and the
previous carrying amount in functional currency is an exchange gain or loss. Exchange differences arising on the settlement
of monetary items or on translating monetary items at rates different from those at which they were translated on initial
recognition during the period or in previous financial statements is recognised in profit or loss in the period in which they arise.
3.10 Revenue recognition

Revenue is recognized upon invoicing the customers for goods sold and delivered net off returns, allowances and trade
discounts. Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been
transferred to the buyer, the Company has no managerial involvement of ownership of the goods, the amount of revenue and
the cost of the transaction can be measured reliably and it is probable that the economic benefit associated with the
transactions will flow to the Company.
3.11 Taxation
The tax expense for the period comprises current tax and deferred tax. Tax is recognized in the income statement, except in
the case it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also
recognized in other comprehensive income or directly in equity.
Current tax
The current income tax charge is calculated based on tax laws enacted or substantively enacted at the balance sheet date.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation
is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.
Deferred tax
Principle of recognition
Deferred tax is recognised as income or an expense amount within the tax charge, and included in the net profit or loss for
the period. Deferred tax relating to items dealt with as other comprehensive income is recognised as tax relating to other
comprehensive income within the statement of profit or loss and other comprehensive income.

Deferred tax relating to items dealt with directly in equity (such as the correction of an error or retrospective application of a
change in accounting policy) is recognised directly in equity.
Taxable temporary difference
A deferred tax liability is recognised for all taxable differences, except to the extent that the deferred tax liability arises from
the initial recognition of goodwill; or the initial recognition of an asset or liability in a transaction which is not a business
combination; and at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).
Deductible temporary difference
A deferred tax asset is recognised for all deductible temporary differences to the extent that it is probable that taxable profit
will be available against which the deductible temporary difference can be utilised, unless the deferred tax asset arises from
the initial recognition of an asset or liability in a transaction that is not a business combination; and at the time of the
transaction, affects neither accounting profit nor taxable profit (tax loss).
Measurement
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is
realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the
3.12 Earnings per share [EPS]
Basic EPS
Renata Limited calculates basic earnings per share amounts for profit or loss attributable to ordinary equity holders of the
parent entity. Basic earnings per share is calculated by dividing profit or loss attributable to ordinary equity holders of the
parent entity (the numerator) by the weighted average number of ordinary shares outstanding (the denominator) during the
period.
Renata Limited presents basic earnings per share in the statement of profit or loss and other comprehensive income. The
company presents basic earnings per share with equal prominence for all periods presented. Renata Limited presents basic
earnings per share, even if the amounts are negative (i.e. a loss per share).

Statement of cash flows has been prepared in accordance with the Bangladesh Accounting Standard BAS-7, 'Statement of
Cash Flows' under direct method. Cash comprises cash on hand and demand deposits. Cash equivalents are short-term,
highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk
of changes in value.
3.14 Operating segments

As there is a single business and geographic segment within which the Company operates, no segment reporting is felt
necessary.

Relationship between a parent and its subsidiaries is disclosed irrespective of whether there have been transactions between
them. Renata Limited discloses key management personnel compensation. The company discloses the nature of the related
party relationship as well as information about those transactions and outstanding balances, including commitments,
necessary for users to understand the potential effect of the relationship on the financial statements.
3.16 Events after the Reporting Period

Events after the reporting period are those events, favorable and unfavorable, that occur between the end of the reporting
period and the date when the financial statements are authorized for issue. Two types of events can be identified: adjusting
events: those that provide evidence of conditions that existed at the end of the reporting period and non adjusting events:
those that are indicative of conditions that arose after the reporting period.

Renata Limited’s activities expose it to a variety of financial risks and those activities involve the analysis, evaluation,
acceptance and management of some degree of risk or combination of risks. Taking risk is core to the financial business, and
operational risks are an inevitable consequence of being in business. Renata Limited’s aim is therefore to achieve an
appropriate balance between risk and return and minimize potential adverse effects on Renata Limited’s financial
performance. Renata Limited’s risk management policies are designed to identify and analyze these risks, to set appropriate
risk limits and controls, and to monitor the risks and adherence to limits by means of reliable and up-to-date information
•149
systems. Renata Limited regularly reviews its risk management policies and systems to reflect changes in markets, products
and emerging best practices.
Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The senior management of Renata Limited carefully manages its exposure to credit risk. Credit exposures
arise principally in receivables from customers into Renata Limited’s asset portfolio. The credit risk management and control
are controlled through the credit policies of Renata Limited which are updated regularly. The Company is also exposed to
other credit risks arising from balances with banks which are controlled through board approved counterparty limits.
Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable
price.
The Company's approach toward managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company's reputation. Typically, management ensures that it has sufficient cash and cash equivalents to
meet expected operational expenses, including the servicing of financial obligations through preparation of the cash forecast
prepared based on time line of payment of the financial obligations and accordingly arrange for sufficient liquidity/fund to
make the expected payments within due date.
Market risk
Renata Limited takes on exposure to market risks, which is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market prices. Market risks arise from open positions in interest rate and
currency, all of which are exposed to general and specific market movements and changes in the level of volatility of market
rates or prices such as interest rates, credit spreads and foreign exchange rates.
a) Currency risk
The Company is exposed to currency risk on certain receivables and payables such as receivables from foreign
customers and payables for import of raw materials, machinery and equipment. The majority of the Company’s foreign
currency transactions is denominated in US Dollar and relates to procurement of raw materials, machinery and
equipment from abroad.
b) Interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. Interest rate risk is the risk that the value of a financial instrument will fluctuate because of
changes in market interest rates. Renata Limited takes on exposure to the effects of fluctuations in the prevailing
levels of market interest rates on both its fair value and cash flow risks. Interest margins may increase as a result of
such changes but may reduce losses in the event that unexpected movements arise.
4. Director’s responsibilities statement

The Board of Directors of respective companies is responsible for the preparation and presentation of the financial
statements of Renata Limited and its subsidiaries.

5. Consolidated property, plant and equipment Amount in Taka
Cost / Revaluation Depreciation

Written
Disposal / Balance Disposal / Balance down value
Balance Addition Rate Balance Charge
Particulars adjustment as at adjustment as at as at
as at during % as at for the
during 30 June during 30 June 30 June
1 July 2016 the year 1 July 2016 year 2017
the year 2017 the year 2017
Freehold land
At cost 1,131,141,463 55,386,525 - 1,186,527,988 - - - - 1,186,527,988
On revaluation 179,132,078 - - 179,132,078 - - - - 179,132,078
1,310,273,541 55,386,525 - 1,365,660,066 - - - - 1,365,660,066
Buildings
At cost 3,363,724,929 71,370,316 - 3,435,095,245 1.54-5 468,065,870 111,862,121 - 579,927,991 2,855,167,254
On revaluation 41,291,251 - - 41,291,251 1.54-5 12,740,731 635,885 - 13,376,616 27,914,635
3,405,016,180 71,370,316 - 3,476,386,496 480,806,601 112,498,006 - 593,304,607 2,883,081,889
Plant and machinery 6,914,494,367 604,751,751 6,400,000 7,512,846,118 5-20 1,965,322,316 461,157,382 6,142,946 2,420,336,752 5,092,509,366
Automobiles 320,464,621 114,283,670 35,872,513 398,875,778 20-25 197,001,774 53,734,463 34,834,300 215,901,937 182,973,841
Office equipment 299,244,019 66,439,990 - 365,684,009 10 -12.5 148,177,204 31,693,855 - 179,871,059 185,812,949
Furniture and fixtures 140,584,916 12,101,470 - 152,686,386 5-20 49,674,309 13,604,141 - 63,278,450 89,407,936
Total 30 June 2017 12,390,077,644 924,333,722 42,272,513 13,272,138,853 2,840,982,204 672,687,847 40,977,246 3,472,692,805 9,799,446,048
Total 30 June 2016 10,784,517,255 1,616,148,159 10,587,771 12,390,077,643 2,246,446,084 602,757,934 8,221,813 2,840,982,205 9,549,095,438
Amount in Taka
6. Capital work- in-progress
30 June 2017 30 June 2016
Opening balance 903,725,332 1,327,466,275

1,846,500,609 2,183,581,735
Capitalized as property, plant and equipment 587,744,467 1,279,856,403
1,258,756,142 903,725,332
7. Long term investment
Investment in Govt. savings certificates 650,000 13,750,000

Investment in Govt. bonds 11,144,720 11,144,720
11,794,720 24,894,720
•151
8. Inventories Amount in Taka
30 June 2017 30 June 2016

Finished goods
- Pharmaceutical 424,026,166 485,097,557
- Animal health 438,425,059 420,866,583
- Contract manufacturing 57,732,598 25,026,371
- Potent product Facility 41,433,943 47,913,328
- Cepha facility 135,781,373 122,809,355
- Penicillin facility 38,101,451 26,106,196
Purnava Limited 32,409,391 55,495,761
Renata Agro Industries Limited 70,312,816 67,619,729
Renata Oncology Limited 13,030,596 11,290,470
1,251,253,393 1,262,225,350
Work-in-process 182,801,854 172,750,725
Raw materials 494,520,663 495,420,361
Bulk materials 642,095,255 767,507,995
Consumable stores and spares 168,455,169 151,694,133
Stock in transit 412,991,688 431,549,995
3,534,872,767 3,631,950,373
Provision for obsolete inventories (138,801,953) (90,412,741)
3,396,070,814 3,541,537,632
9. Trade and other receivables
Trade receivables
Trade receivables- unsecured 2,101,508,712 2,114,032,136

Allowance for doubtful receivables (74,250,078) (59,611,661)
2,027,258,634 2,054,420,475
Other receivables
Sundry receivables - unsecured but considered good 51,785,609 82,888,910

Allowance for doubtful receivables (1,918,825) (1,918,825)
299,610,116 327,691,754
2,326,868,750 2,382,112,229
10. Advances, deposits and prepayments
Advances
Loan to employees against motorcycle 90,035,499 54,153,664

Loan to employees against scooter 1,953,887 3,006,000
Loan to employees against salary 32,011,014 24,202,998
Advance for house rent 10,979,676 11,045,833
Advance for inventory 23,483,472 23,568,885
Loan to employees 20,896,937 18,545,452
Advance against expenses - travel 18,642,195 38,398,492
Advance VAT 64,710,809 51,272,903
Other advances 14,631,000 13,762,000
277,344,489 237,956,226

Amount in Taka
30 June 2017 30 June 2016

Deposits
Mymensingh Palli Biddut Samity 12,256,000 11,872,000
Tender deposits 13,606,948 8,904,110
Security deposit to Linde Bangladesh Limited 880,000 784,000
Security deposit to G4S Security Services Bangladesh (P) Ltd. 946,650 946,650
Titas Gas Transmission and distribution Co. Limited 455,811 455,811
Dhaka Electric Supply Co. (DESCO) Limited 2,310,000 2,310,000
Meghna Model Service Center 110,000 110,000
Radison Water garden Hotel 200,000 200,000
Bangladesh Petroleum Exploration & Production Company Limited 7,000 7,000
Gazipur Palli Bidyut Samity 10,248,000 10,248,000
Bangladesh Custom House, Airport 200,000 200,000
Power Development Board, Sylhet 90,000 90,000
Power Development Board, Comiilla 40,000 40,000
Bangladesh Power Development Board, Bogra 232,534 -
Bangladesh Power Development Board, Faridpur 75,000 -
Dhaka Medical college & Hospital 1,540 1,540
Other deposits 260,500 260,500
41,919,983 36,429,611
Prepayments

Advertisement 14,351,141 18,826,502
20,519,472 27,968,902
339,783,944 302,354,739
11. Investment in shares and others
Investment in shares (Note-11.1) 154,669,945 149,974,150

934,669,945 149,974,150
•153
11.1 Investment in shares Amount in Taka
Market value Cost

30 June 2017 30 June 2016 30 June 2017
Square Pharma Limited 97,911,651 75,270,123 45,296,940

British American Tobacco Bangladesh Company Limited 9,195,225 8,775,000 1,964,918
BSRM Steels Limited 5,454,000 - 5,523,870
Confidence Cement Limited 6,730,000 - 6,995,370
AB Bank 1st Mutual Fund 3,500,000 - 3,564,200
Lafarge Surma Cement Limited 6,290,000 - 8,339,647
Southeast Bank Limited 5,550,000 - 6,825,050
LR Global Bangladesh Mutual Fund One 1,560,000 - 1,606,400
ACI Formulations Limited 3,001,500 - 3,242,427
Baraka Power Limited 4,370,000 - 4,371,393
The City Bank Limited 3,740,000 924,000 3,724,840
Central Depository Bangladesh Limited (unquoted) 1,569,450 1,569,450 1,569,450
Summit Power Limited 1,347,094 3,593,400 1,392,772
Islami Bank Bangladesh Limited 181,254 164,367 163,748
People's Leasing and Financial Services Limited 11,669 9,761 117,137
BRAC Bank Limited 48,420 26,500 13,905
International Leasing & Finance Services Limited 13,149 6,791 39,497
United Commercial Bank Limited 411,394 319,972 2,603,641
EXIM Bank Limited 2,172 1,424 1,494
Social Islami Bank Limited 1,193 689 596
AFC Agro Biotech Limited - 21,406,186 -
Khulna Power Company Limited - 12,980,000 -
Matin Spinning Mills Limited - 11,819,239 -
IDLC Finance Limited - 2,935,000 -
Unique Hotel & Resorts Limited - 2,802,000 -
Trust Bank Limited - 1,998,000 -
Pioneer Insurance Company Limited - 1,160,844 -
IFAD Autos Limited - 718,719 -
Bata Shoe Company (Bangladesh) Limited 2,262,600 2,410,800 264,501
United Leasing Company Bangladesh Limited 783,689 610,365 578,923
Investment Corporation of Bangladesh 735,487 471,520 1,066,263
154,669,945 149,974,150 99,266,981

Amount in Taka
12. Cash and cash equivalents 30 June 2017 30 June 2016
Cash in hand 5,128,894 5,152,179
Cash at bank
Standard Chartered Bank 389,329,381 169,076,662

Agrani Bank Limited 9,610,772 13,263,787
Sonali Bank Limited 23,954,240 20,237,432
Bank Asia Limited 47,672,932 132,667,546
Prime Bank Limited 1,345,191 1,392,628
Eastern Bank Limited 73,908,594 33,431,997
United Commercial Bank Limited 957,219 909,075
Pubali Bank Limited 3,672,929 2,781,942
Janata Bank Limited 625,175 483,310
Islami Bank Bangladesh Limited 1,810,581 1,798,287
Dutch Bangla Bank Limited 671,426 1,870,894
Commercial Bank of Ceylon PLC 26,115,893 -
The City Bank Limited 1,703,050 -
Citibank N. A. 1,732,817 -
One Bank Limited - 2,993
634,576,631 469,209,272
Balance with City Bank Capital Resources Limited 12,221,437 31,434

Balance with ICB Securities Trading Company Limited 7,529 8,449
12,228,966 39,882
651,934,491 474,401,334
13. Share capital
Authorized share capital

100,000,000 Ordinary shares of Tk.10 each 1,000,000,000 1,000,000,000
Issued, subscribed and paid up capital
1,294,260 ordinary shares of Tk.10 each issued for cash 12,942,600 12,942,600
1,724,490 ordinary shares of Tk.10 each issued for consideration other than cash 17,244,900 17,244,900
57,877,791 ordinary shares (49,934,764 ordinary shares as at 30 June 2016)
of Tk.10 each issued as bonus shares 578,777,910 499,347,640
608,965,410 529,535,140
•155
At 30 June 2017, the shareholding position of the Company was as follows:
Nationality / Number of Face value % of total

Name of the shareholders
incorporated in shares Taka shareholdings
Sajida Foundation Bangladesh 31,056,973 310,569,730 51%
Business Research International Corp. Inc. Panama 13,265,768 132,657,680 22%
ICB Unit Fund Bangladesh 2,795,232 27,952,320 5%
Investment Corporation of Bangladesh Bangladesh 2,215,251 22,152,510 4%
Shadharan Bima Corporation Bangladesh 2,664,207 26,642,070 4%
Other shareholders Bangladesh & others 8,899,110 88,991,100 15%
60,896,541 608,965,410 100%
Classification of shareholders by holdings:
30 June 2017
Holdings No. of No. of No. of No. of % of
shareholders shareholders total total total
as per folio as per BOID shareholders shareholdings shareholdings
Less than 500 shares 133 3,216 3,349 383,472 1%

501 to 5000 shares 48 745 793 1,282,404 2%
5,001 to 10,000 shares 10 72 82 583,498 1%
10,001 to 20,000 shares 19 46 65 940,446 2%
20,001 to 30,000 shares 2 21 23 574,730 1%
30,001 to 40,000 shares - 18 18 624,191 1%
40,001 to 50,000 shares - 10 10 456,844 1%
50,001 to 100,000 shares 2 17 19 1,243,828 2%
100,001 to 1,000,000 shares 1 14 15 3,741,820 6%
Over 1,000,000 shares 2 3 5 51,065,308 84%
217 4,162 4,379 60,896,541 100%
14. Revaluation surplus

The freehold land and buildings were revalued by a firm of professional valuers in the year 1995 and
the resulting increase of value of Tk. 220,423,329 has been shown as revaluation surplus.
The breakup of revaluation surplus is as follows:
Amount in Taka
30 June 2017 30 June 2016

Land 179,132,078 179,132,078
Buildings 28,550,519 29,186,404
207,682,597 208,318,482
Depreciation adjustment on revalued buildings (635,885) (635,885)
207,046,712 207,682,597
Adjustment of deferred tax on revaluation surplus (51,761,677) (51,400,648)
155,285,034 156,281,949

Amount in Taka
15. Tax holiday reserve
30 June 2017 30 June 2016
Opening balance 46,643,337 342,980,406

Provision made during the year - 18,690,370
46,643,337 361,670,776
Transferred to retained earnings - (315,027,439)
46,643,337 46,643,337
Non-controlling interest share of tax holiday reserve (5,664) -
46,637,673 46,643,337
16. Retained earnings
Opening balance 10,176,639,171 7,605,373,079

Addition of tax holiday reserve - (18,690,370)
Transfer of tax holiday reserve - 315,027,439
Adjustment for non-controlling interest share of tax holiday reserve 5,664 -
Stock dividend issued (79,430,270) -
Final dividend (450,104,869) -
Interim dividend (243,586,164) -
Depreciation adjustment on revalued assets 635,885 635,885
12,082,218,918 10,176,639,171
17. Non-controlling interests
Share capital 6,200 6,200

Retained earnings and reserve (including tax holiday reserve) 68,523 50,711
74,723 56,911
18. Long term loan - net off current portion
The Hongkong and Shanghai Banking Corporation Limited (Note-18.1) 257,110,932 406,895,993
257,110,932 406,895,993
Less : Current portion

161,200,000 156,800,003
95,910,932 250,095,990
•157
Details of facility:
Facility limit : USD 6,811,696

Validity : Up to 18 November 2018.
Terms of Repayment : Twenty equal quarterly installments commencing from February 2014.
Nature of Security : i) Registered mortgage over 376.87 decimals industrial land in Rajendrapur where Cepha,
Penicillin, and Bottle shed are situated.
ii) First Charge over all the present and future inventories, trade receivables, receivables claims,
contracts, bills, plant, machinery and equipment of the Renata Limited.
19. Deferred tax liability
Deferred tax liability has been recognized in accordance with the provision of "BAS-12" based on temporary
differences arising due to difference in the carrying amount of the assets or liabilities and its tax base.
Amount in Taka
30 June 2017 30 June 2016
Opening balance 970,413,404 696,523,414

1,170,470,120 970,413,404

Amount in Taka
Carrying Tax Taxable/ (deductable) Deferred tax

liabilities/
amount base temporary difference (assets)
Provision for doubtful debts and obsolete inventories (73,130,747) - (73,130,747) (18,282,687)
Provision for gratuity (778,569) - (778,569) (272,499)
Investment in shares 154,669,945 99,266,981 55,402,964 5,540,297
Deferred tax liabilities/(assets) as at 30 June 2017 1,170,470,120
Charged to available for sale reserve (OCI) 5,540,297

200,056,716

Computation of deferred tax for the year ended 30 June 2016 Amount in Taka
Carrying Tax Taxable/ (deductable) Deferred tax

liabilities/
amount base temporary difference (assets)
Gratuity provision (19,728,569) - (19,728,569) (6,904,999)
Provision for doubtful debts and obsolete inventories (149,951,801) - (149,951,801) (37,487,950)

273,889,990
Amount in Taka
20. Short term loan and overdraft
30 June 2017 30 June 2016
Short term bank loan
The City Bank Limited (Note-20.3) 18,183,750 21,167,688
Standard Chartered Bank (Note-20.4) 529,563,134 1,363,613,386
Citibank N. A. (Note-20.5) 531,479,144 372,441,895
1,674,519,824 2,195,287,335
Overdraft

The City Bank Limited (Note-20.3) - 3,384,373
Standard Chartered Bank (Note-20.4) - 31,911,165
Citibank N. A. (Note-20.5) - 64,099,901
297,934,129 438,457,595
1,972,453,954 2,633,744,930
The terms and conditions of the facility available for Overdraft, Acceptance,
LATR, Revolving, Import and Demand loan are as follows:
•159
20.1 Eastern Bank Limited
Overdraft
Purpose : To finance overhead cost and duty payment.

Purpose : To import plant and machinery.
Import finance
Purpose : To import raw materials.
Security :
i) First charge over all present and future inventories and trade receivable of Renata Limited
under pari-passu security sharing agreement.
iii) Registered hypothecation by way of pari passu with RJSC on entire inventory book debts and
other floating assets and plant and machinery of the Company in favor of Eastern Bank Limited.
Import loan (IMP01 and IMP02)

Purpose : To import raw materials, plant & machinery and spare on sight and deferred basis.
Import cash limit (IMC01 and IMC02)

Purpose : To release deferred documents against borrowers' acceptance.
Short term loan (LNL01)

Purpose : To finance VAT, duty, and regulatory payments.
Overdraft (O/D01)
Purpose : To meet overhead expense and to facilitate purchase of materials from local sources.
Security :

20.3 The City Bank Limited

Purpose : To import API, excipient, packing materials and finished materials.
Import finance
Purpose : To retire sight Letter of credit documents opened for procurement of API, excipient,
packing materials and finished materials.
Repayment : Within 180/150 days from the date of disbursement.
Short term loan

Purpose : For payment of duty and other charges related to import and VAT.
Overdraft
Purpose : To meet the day to day operating, promotional, and marketing expenses.
Security :
ii) First charge over all present and future plant and machinery of Renata Limited with RJSC on
pari passu security sharing basis with the existing lenders.
20.4 Standard Chartered Bank
Letter of credit
Purpose : To open letter of credits for import of raw materials, packing materials, capital machinery,
spares and other items required for regular course of business.
Loan against Trust Receipt (LATR)

Overdraft
Purpose : For working capital purposes.
Repayment : Overdraft to be cleaned up for 4 days in one year.
Acceptance
Purpose : To provide acceptance against letter of credits issued by the bank.
Security :
•161
20.5 Citibank N. A.

Purpose : To open letter of credits for import of raw materials, packing materials, capital machinery, spares
Repayment : Within 180/ 360 days from the date of disbursement.
Purpose : To refinance import letter of credits.

Short term loan

Purpose : To finance local purchase of active and raw materials, packing materials, capital machinery, spares
Overdraft
Purpose : To finance regular selling, general and administrative expenses.
Facility limit : Combined USD 980,000.
Cheque purchase/ Cash management line

Purpose : To facilitate the cash management funds of day 0 or day 1.
Security :
i) First charge over all present and future inventories and trade receivable of Renata Limited under
pari-passu security sharing agreement.
20.6 Bank Asia Limited
Revolving letter of credit

Purpose : To import raw materials, machineries and spare parts for the Company.
Revolving LATR
Overdraft
Purpose : For payment of duty VAT, taxes and operating expenses.
Revolving demand loan

Purpose : For procurement of pharmaceuticals and packing materials from local sources.
Security :

20.7 Commercial Bank of Ceylon PLC
Facility limit : Tk. 1,500 million.

Security :
Amount in Taka
21. Trade payables
30 June 2017 30 June 2016
Local purchase 184,356,325 264,661,163
Toll manufacturing charges (Sharif and NAFCO) 586,697 7,094,416
Payables for consumable - plant 17,470,000 30,856,092
202,413,022 302,611,671
22. Accruals
Leave incentive and encashment 257,905,161 237,984,413
Sales incentive 94,209,689 47,485,630
Performance bonus 20,840,398 21,815,170
Prescription bonus 43,140,032 48,138,312
Recreation allowance 958,484 4,026,114
Annual and festival bonus 174,854,238 101,381,910
Leave fare assistance 58,881 1,552,931
Legal expenses 1,797,540 2,077,514
Professional expenses 742,000 652,250
Family day expenses 26,767,935 4,253,907
Field force expenses 35,395,404 35,470,799
695,223,269 520,332,876
23. Provisions and other liabilities
Provisions
Meeting expenses 87,527,319 70,075,697
Final settlement of employees 297,791 -
87,825,110 70,075,697
Other liabilities
Workers' profit participation fund 161,879,695 213,811,120

Workers' welfare fund 81,300,504 35,888,752
VAT Payable 107,030,084 107,030,084
Withholding VAT 468,646 95,798
Withholding tax 3,765,411 6,551,020
Export commission payable 14,126,178 21,420,917
PF Trustee 1,521,241 2,853,977
•163
Amount in Taka
30 June 2017 30 June 2016

Royalty payable 12,636,465 10,395,776
Agent security deposit 7,499,837 7,377,421
Payable to other suppliers 16,594,418 17,341,681
Grant fund - GAIN - 5,872,319
Advance against sales 213,008 38,305,760
Gratuity 197,453,610 35,972,625
Lease hire vehicle - 2,598,017
605,110,470 506,089,663
692,935,580 576,165,360
24 Unclaimed dividend
Unclaimed dividend upto 4 years 17,274,746 10,638,162
Unclaimed dividend above 4 years 9,310,592 6,120,579
26,585,338 16,758,741
25 Provision for taxation
Opening balance 960,375,348 752,761,048
Provision made during the year 907,245,115 753,629,600
1,867,620,463 1,506,390,648
Tax paid during the year (1,106,241,105) (546,015,300)
Adjustment during the year (2,287,719) -
759,091,639 960,375,348
26 Turnover (Net)
2016 - 2017 2015 - 2016
Renata Limited
Renata Agro Industries Limited 15,961,286,528 14,129,773,419
Purnava Limited 524,473,608 539,597,445
Renata Oncology Limited 159,205,830 107,711,013
- 27,657
16,644,965,966 14,777,109,534
During the year, sale of pharmaceuticals products includes export sales of Tk. 990,112,975 equivalent to US$ 12,564,971.
27 Cost of sales
Renata Limited 7,940,504,696 6,966,978,425
Renata Agro Industries Limited 338,536,388 356,267,948
Purnava Limited 22,214,193 20,025,410
Renata Oncology Limited - 27,657
8,301,255,277 7,343,299,440
28 Administrative, selling and distribution expenses
Salaries, wages and allowances 1,676,141,362 1,382,409,747
Fuel and power 53,541,120 53,702,133
Rent, rates and taxes 41,107,776 30,739,208
Insurance 19,738,946 9,603,609
Travelling, moving and entertainment expenses 291,452,401 265,979,701
Repairs and maintenance 38,910,325 32,672,146
Legal and professional expense 1,941,372 4,451,137
Bad debts expenses 16,095,308 8,733,555
Audit fee 952,750 684,250
Directors' fee 290,000 430,000
Membership fees and subscription 4,101,244 23,030,235
Meeting and corporate expense 82,809,809 51,279,948

Amount in Taka
2016 - 2017 2015 - 2016
Advertising and sales promotion 329,279,857 331,265,080

Field expenses 818,385,449 778,011,288
Depreciation 91,191,815 68,847,043
Printing and stationery 33,584,783 45,333,416
Postage, telex, fax and telephone 53,253,369 32,296,258
Distribution freight 298,029,495 277,022,986
Lunch, snacks, tea and welfare exp. 178,581,051 150,313,134
4,215,040,459 3,702,630,061
29 Other income
Gain from sale of quoted shares 2,902,706 2,287,853
Dividend income 2,808,734 4,129,553
Interest income 17,463,809 2,337,253
Scrap sales 2,789,276 3,152,035
Gain on disposal of property, plant and equipment 19,327,950 4,023,503
45,292,475 15,930,197
30 Finance costs
Exchange loss 60,982,043 20,303,123
Bank charges 12,196,512 12,695,590
201,950,341 279,001,241
31 Basic earnings per share (EPS)
The computation of EPS is given below:

Earnings attributable to the ordinary shareholders (net profit after tax for the year) 2,673,976,465 2,274,293,138
Weighted average number of ordinary shares outstanding during the year (Note-32.1) 60,896,541 60,896,541
Basic earnings per share (EPS) 43.91 37.35
31.1 Weighted average number of shares outstanding during the year
Opening number of shares 52,953,514

Bonus shares issued in November 2016 7,943,027
60,896,541
Last year's EPS has been adjusted as per the requirement of BAS-33 "Earnings Per Share"
32. Payments to directors and officers
The aggregate amount paid (except Directors' fees for attending board meetings) during the year to
Directors and Officers of the Company is disclosed below as required by the Securities and Exchange Rules-1987:
Directors Officers
Remuneration / salary 9,693,817 374,785,301
House rent 5,910,591 283,147,056
Bonus 4,039,091 177,587,845
Contribution to provident fund 969,382 37,817,119
Gratuity 1,211,727 229,565,567
Conveyance allowance and transport 2,956,420 181,920,111
Other welfare expenses 4,240,207 34,474,990
29,021,235 1,319,297,989
•165
32.1 During the year no payment has been made to any non-executive Directors for any special services rendered.
33 Dividend paid to non-resident shareholders

Dividend paid to non-resident shareholder, Business Research International Corp. Inc. during the year 2016 was Tk.
78,296,472 equivalent to US$ 988,093 for their 11,514,187 shares, and interim dividend paid during the year 2017 was
Tk.42,372,208 equivalent to US$ 526,101 for their 13,241,315 shares.
34 Contingent liabilities
34.1 There are contingent liabilities on account of unresolved disputed corporate income tax assessments involving tax claims
by the tax authority amounting to Tk 8,381,193 for the assessment year 1998-99 to 2000-01; Taka 11,888,503 for the
assessment year 2013-14; Taka 14,478,424 for the assessment year 2014-2015 and Taka 21,059,586 for the assessment
year 2015-2016 for which appeals are pending with the Commissioner of Taxes (Appeal) and the Hon'ble High Court
Division of the Supreme Court.
34.2 The Assistant Commissioner of Taxes issued a notice vide letter No. SA-162/2014-2015/82 on 01 September 2014
claiming that during the assessment year 2008-09 (income year 2007), the Company did not deduct VAT on certain
accounting heads amounting to Tk. 232,741,698 and tax file reopened accordingly under Section 93 of the Income Tax
Ordinance, 1984. Total tax amount was calculated Tk. 69,822,509 on that claimed amount by using the prevailing
corporate tax rate 30%. However, the Hon'ble High Court delivered the verdict in favour of the Company on 6 January
2016 but the National Board of Revenue has made leave to appeal to the Supreme Court Appellate Division against the
verdict.
34.3 The Value Added Tax Authority issued a notice vide letter No. 4/LTU-Mushak/Circle-5(29)Renata/631 on 28 January
2015 claimed that the Company did not pay VAT on Premix Products during 2009 to 2013 period and VAT claimed Taka
399,242,746 for the period. A writ petition to High Court was made against the mentioned claim and the High Court
issued stay order until disposal through its verdict.
35 Claims by the Company not acknowledged as receivable
None as at 30 June 2017.
36. Commitments
On the statement of financial position date, the Company is enjoying
unfunded credit facilities from the following banks: Amount in Taka
June 30, 2017 June 30, 2016

Letters of credits (Note 37.1) 1,442,662,862 834,151,922
Outstanding guarantees issued by the banks 92,244,970 87,528,489
Capital expenditure commitments 454,872,572 23,230,746
1,989,780,404 944,911,157
36.1 Letters of credit

Limit June 30, 2017 June 30, 2016
The Hongkong and Shanghai Banking Corporation Ltd. - - 94,272,298
Standard Chartered Bank 1,700,000,000 263,892,692 143,726,382
Eastern Bank Limited 550,000,000 102,241,542 37,376,422
The City Bank Limited 320,000,000 120,933,774 11,094,841
Citi Bank N.A. 403,000,000 462,614,116 58,483,995
Commercial Bank of Ceylon PLC 750,000,000 353,248,795 172,474,991
Bank Asia Limited 400,000,000 139,731,943 316,722,993
4,123,000,000 1,442,662,862 834,151,922

37 Disclosure as per requirement of Schedule-XI, Part-II of the Companies Act, 1994
37.1 Employee position of the Renata Limited as per requirement of schedule XI, Part-II, Para-3
The company engaged 6,493 (6,322 as of June 2016) employees as of June 2017, of which 4,449 (4,249 as June of
2016) is permanent employees and 2,044 (2,073 as of June 2016) is casual and temporary workers as required. All
employees received total salary of above Tk. 36,000 per annum.
38 Payments / receipts in foreign currency
38.1 During the period, the following payments were made in foreign currency
for imports, calculated on CIF basis of:
Foreign Local
currency currency
USD Taka
Active, raw and packaging materials 53,225,328 4,205,244,300

Machinery and spares 10,774,971 850,473,703
64,000,299 5,055,718,003
38.2 The following expenses were incurred during the year in foreign exchange on account of:
USD
Professional consultation fee 293,168
Export promotional expenses 940,647
Product registration 99,415
1,333,230
38.3 Foreign exchange was earned in respect of the following:
Export of goods on FOB 12,564,971
39 General
1) All the figures in the financial statements represent Bangladesh Taka currency rounded off to the nearest Taka.
2) The comparative information have been disclosed in respect of July 2016 to June 2017 for all numerical information in
the financial statements and also the narrative and descriptive information as found relevant for understanding of the
current year's financial statements.
40 Events after the reporting period

"The Board of Directors in their meeting held on 21 October 2017 have recommended total cash dividend @ 130% per
share of Taka 10 each (including interim dividend @ 40% per share of Taka 10 each aggregating Taka 243,586,164)
aggregating Taka 791,655,033 and stock dividend @ 15% of Taka 10 each aggregating Taka 91,344,812 for the year
ended 30 June 2017 subject to approval of the shareholders in the Annual General Meeting scheduled to be held on 09
December 2017. The financial statements for the year ended 30 June 2017 only includes the effect of the interim cash
dividend, which has already been paid, and do not include the effects of the final cash dividend and stock dividend which
will be accounted for in the period when shareholders' right to receive the payment will be established.
There are no other material events identified after the statement of financial position date which require adjustment or
disclosure in these financial statements."
167 •renata annual report •167

CORPORATE HEADQUARTERS
Plot # 1, Milk Vita Road, Section-7, Mirpur, Dhaka-1216, Bangladesh
PABX: (880 -2) 800 1450-54, Fax: (880 -2) 800 1446
e-mail: renata@renata-ltd.com, Website: www.renata-ltd.com
MANUFACTURING SITES
Plot # 1, Milk Vita Road, Section-7, Mirpur, Dhaka-1216, Bangladesh, PABX: (880 -2) 801 1012-13
Noyapara, Bhawal Mirzapur, Rajendrapur, Gazipur, Bangladesh, Tel: 06825-55148
Kashor, P.O.: Seed Store, P.S.: Bhaluka, Mymensingh, Bangladesh.
DISTRIBUTION CENTRES
Burigonga Depot Chittagong Depot Khulna Depot

Teghoria (Nuton Raster Moor), Prashanti Tower-3, 27, Sir Iqbal Road,
South Keranigonj, Dhaka-1311 Prashanti R/A Road, Colonel Hat, Khulna-9100
Mobile: 01847028891 Pahartali, Chittagong-4202 Phone & Fax: 041-720154
e-mail: dhaka@renata-ltd.com Phone: 031-751255 Mobile: 01817049382
Fax: 031-751256 e-mail: khulna@renata-ltd.com
Gazipur Depot Mobile: 01817049449
E/214, Joorpukurpar e-mail: chittagong@renata-ltd.com Jessore Depot
Joydebpur, Gazipur-1700 Sarder Vila, Holding No-1021/B
Tel: 02-9263297, Mobile: 01817045729 Chokoria Depot Airport Road, Arabpur,
e-mail: gazipur@renata-ltd.com Hospital Road, Chokoria-4740 Jessore-7400
Phone & Fax: 034-2256251 Phone & Fax: 0421-60851
Bhairab Depot Mobile: 01817041015 Mobile: 01817049381
808, Bhairabpur, e-mail: chakaria@renata-ltd.com e-mail: jessore@renata-ltd.com
Bhairab, Kishoregonj-2350
Phone & Fax: 02-9470265 Comilla Depot Rajshahi Depot
Mobile: 01814651002 Bscic Road, Ranir Bazar, C-212, Laxmipur,
e-mail: bhairab@renata-ltd.com Comilla-3500 Greater Road,
Phone & Fax: 081-76989 Rajshahi-6000
Turag Depot Mobile: 01817049452 Phone & Fax: 0721-772893
House-39, Road-06 e-mail: comilla@renata-ltd.com Mobile: 01817049459
Block-C, Turag Thana Road e-mail : rajshahi@renata-ltd.com
Dhour, Turag, Dhaka-1230 Kirtonkhola Depot
Phone: 02-8981813 Amtola Moor, Band Road, Korotoa Depot
Fax: 02-8981898 Barisal-8200
Betgari, Dhaka Road, Banani,
Mobile: 01833316984 Phone & Fax: 0431-71249
Bogra-5800
e-mail: turag@renata-ltd.com Mobile: 01817049375
Phone & Fax: 051-66379
e-mail: barisal@renata-ltd.com
Mobile: 01817049376
Tangail Depot e-mail: bogra@renata-ltd.com
Holding No.1135, Biswas Betka, Feni Depot
Atpukurpar, Dhaka Road, Dhaka Chittagong Highway,
Rangpur Depot
Tangail Sadar, Tangail-1900 Debipur, Fatepur, Shorshodi,
Faizon Vila, Road-1,
Fax: 0921-61158 Feni-3902
House-3, Karanipara,
Mobile: 01847-186614 Mobile: 01817049531
Rangpur-5400
e-mail: tangail@renata-ltd.com e-mail: feni@renata-ltd.com
Phone & Fax: 0521-62822
Mobile: 01817049072
Brahmaputra Depot Faridpur Depot
e-mail: rangpur@renata-ltd.com
By-pass Mour, Dhaka Road, Utrile Lodge,
Digarkanda, Mymensingh Masjid Bari Sarak,
Mobile: 01817049456 Niltuly, Faridpur-7800 Dinajpur Depot
e-mail: mymensingh@renata-ltd.com Phone & Fax: 0631-62174 Amir Lodge, Block-08,
Mobile: 01817049370 House-36, Upshohor Housing
e-mail: faridpur@renata-ltd.com More, Dinajpur-5200
Surma Depot
Phone & Fax: 0531-66164
Sylhet Sunamgonj By-pass Road,
Mobile: 01833-316987
Lotipur, Dakshin Surma, Sylhet - 3100
e-mail: dinajpur@renata-ltd.com
Mobile: 01817049367
e-mail: sylhet@renata-ltd.com

RENATA LIMITED Revenue
Stamp
of
PROXY FORM Taka 20.00
I/We, the undersigned, being a member of the above named Company hereby appoint
Mr./Ms.
Of (Address)
as my/our proxy to vote and act for me/us and on my/our behalf, at the 44th Annual General
Meeting of the Company, to be held at the Lakeshore Hotel, La Vita Hall, Road-41, House-46,
Gulshan-2, Dhaka-1212 on Saturday, December 09, 2017 at 11.00 a.m. and at any adjournment
thereof.
Specimen Signature (s) of the Shareholder (s) Date:
Name in Block Letters
Address
Folio/BO No.
Date:
Signature of the Proxy
RENATA LIMITED
Shareholders’ Attendance Slip

I/We hereby record my/our attendance at the 44th Annual General Meeting
being held on Saturday, December 09, 2017 at the Lakeshore Hotel, La Vita Hall,
Road-41, House-46, Gulshan-2, Dhaka-1212 at 11.00 a.m.
Name of Shareholder(s)...............................................................................................................
Register Folio/BO No. .................................................................................................................
holding of ........................ Ordinary Shares of Renata Limited.
Signature (s) of Shareholder(s)

Note :
1. Please note that AGM can only be attended by the honourable shareholder or
properly constituted proxy. Therefore, any friend or children accompanying with
honourable shareholder or proxy cannot be allowed into the meeting.
2. Please bring this slip with you and present at the reception desk.
3. No Gift/Gift Coupon/Food Box shall be distributed at the 44th AGM in Compliance with the Bangladesh Securities
and Exchange Commission’s Circular No. SEC/CMRRCD/2009-193/154 dated October 24, 2014
•272
Renata Limited
Corporate Headquarters: Plot # 1, Milk Vita Road, Section-7, Mirpur, Dhaka-1216, Bangladesh, GPO Box No. 303
Phone: 8001450, 8001454 (PABX), Fax: 880-2-8001446, Website: www.renata-ltd.com
Find us on at http://www.facebook.com/renatalimited

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2016-2017

Dear Sir/Madam (s)

Md. Jubayer Alam

October 21, 2017

Agenda-4: To re-appoint the Independent Director.

By Order of the Board

(Md. Jubayer Alam)

4 Our Mission and Vision

33 Statement of Value Addition

34 Corporate Social Responsibility

Financial Statements of Renata Limited

51 Statement of Financial Position

52 Statement of Profit or Loss and Other Comprehensive Income

53 Statement of Changes in Equity

54 Cash Flow Statement

55 Notes to the Financial Statements

Report and Financial Statements of Renata Agro Industries Limited

86 Statement of Financial Position

87 Statement of Profit or Loss and other Comprehensive Income

88 Statement of Changes in Equity

89 Cash Flow Statement

90 Notes to the Financial Statements

105 Directors’ Report

106 Auditors’ Report

107 Statement of Financial Position

108 Statement of Comprehensive Income

109 Statement of Changes in Equity

110 Cash Flow Statement

111 Notes to the Financial Statements

Report and Financial Statements of Renata Oncology Limited

119 Directors’ Report

120 Auditors’ Report

121 Statement of Financial Position

125 Notes to the Financial Statements

Consolidated Financial Statements of Renata Limited and its Subsidiaries

138 Auditors’ Report

139 Statement of Financial Position

140 Statement of Profit or Loss and Other Comprehensive Income

141 Statement of Changes in Equity

142 Cash Flow Statement

143 Notes to the Financial Statements

168 Corporate Directory

169 Proxy Form

Marketing & Distribution Rights

S. F. Ahmed & Co.,

2 •renata annual report

The Corporate Family

4 •renata annual report

Growth of 20 Old Molecules 28%

8 •renata annual report

10 •renata annual report

Kaiser Kabir, CEO & Managing Director

Zahida Fizza Kabir, Director

12 •renata annual report

Manzoor Hasan, OBE, Independent Director

Tanya Tazeen Karim, Independent Director

14 •renata annual report

Md. Jubayer Alam, Company Secretary

THE AUDIT COMMITTEE

General Manager, Manufacturing

Head of Marketing, Pharmaceutical

Head of Animal Health

Heads of Quality Assurance